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There are stipulated sanctions and penalties enshrined in
the Law for defaulters. This ranges from a fine up to the sum of N2 million
naira, a jail term of up to 6 months or both depending on the gravity of the
default. The tax authority (EIRS) is also empowered by Law to effect the BOJ
principle in respect of defaulting operators.
The tax is collected at the point where a consumer makes payment
for any service rendered or facility used in hotels, event centres, fast food
joints, restaurants, eateries.
Collecting Agents are expected to make remittances into
dedicated Internally Generated Revenue accounts of Edo State Government in the
The Consumption Tax is an Edo State Government tax to be
paid by any individual/group on services enjoyed/facility used in any of the
outfits covered by the Law; while the Value Added Tax is a Federal tax imposed
on certain goods/services.
A default is said to have occurred
when a collecting agent fails to register or make returns and/ or fails
to remit the taxes collected within the time allowed by law.
BOJ is an acronym for “Best of Judgement”. This is a
principle that will be applied by the tax authority in the assessment of the
tax liability of a defaulting operator. This implies that the tax authority has
the mandate to make an estimation of the tax liability of an operator in the
event of the operator withholding full disclosure in services offered or
The law is meant to generate revenue for rapid social
and economic development of Edo State and also act as a catalyst for the growth
of the hospitality/tourism industry
Hotel and Event Centers Occupancy and Restaurant Consumption
Law of Edo State, 2011.
The rate of the consumption tax is a 5% charge on the cost of any service enjoyed or facility used in any of the identified outlets.
The tax is to be paid on any service rendered and facilities
used in the hotels, event centers, fast food joints, restaurants, eateries etc.
Hotels, Guest Houses, Events Centers, Fast Food Joints,
The respective collecting agents are expected to make
remittances on or before the 7th day succeeding the month of collection.
The Law came into effect on the 30th of June, 2011. However,
effective implementation commenced on the 1st of September, 2011.
Operators of Hotels, Guest Houses, Event Centres, Fast Food
Joints, Restaurants, Eateries.
Those who patronize and use the facilities of Hotels, Guest
Houses, Event Centres, Fast Food Joints, Restaurants, Eateries.