Hotel Owners Association, Abuja has lamented imposition of multiple taxation by the Federal Government and Abuja Municipal Area Council, saying it is affecting their business negatively.
This was disclosed by the president of the association, Mrs. Bola Onigbogi in Abuja recently while addressing members during their annual event.
“The year started with a 40 percent increase on our electricity tariffs, then we were asked to pay an additional 5per cent of our revenues to a new body called, FCT entertainment and events center department. We have also had to enter into discussions with Abuja Municipal Area Council to discuss some of the new tariffs and taxes that they have levied us this year. A combination of this punitive regulatory regime and low sales has resulted in a cocktail of hardship for hotels in 2015.
“The situation where we are billed from multiple agencies on the same item has to stop. A good example is the 5per cent entertainment fee which we have been asked to pay. What then is the use of paying vat?
“Our member hotels that have closed shop and laid off workers in their hundreds are a testament to this. A quick count of the amount of taxes that we pay shows that we pay up to 40 different taxes in Abuja. Can anyone survive this onslaught? Can any business thrive under this regulatory environment?
“This year has not been a perfect year for the hotel industry in Abuja. Our sales and occupancy figures are dependent on the activities happening in the Abuja socio-economic environment. It will not take a genius to decode that with the elections and handover of government, things have been pretty slow in Abuja.
“We should remind our regulators that HOFA is a body of law-abiding corporate citizens. We will always live up to our civic responsibilities as stipulated by the law. But where we are confused as to the veracity of any regulation, we will be forced to ask for an interpretation from the appropriate quarter,” Onigbogi said.

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