By Dipo Olowookere
The Lagos Internal Revenue Service (LIRS) has introduced an Electronic Revenue Assurance (ERA) System for the collection of consumption tax from hotels, restaurants, night clubs and event centres in the state.
A statement issued yesterday by Director in charge of New Growth Area at the LIRS, Mr Ayodele Adebayo, explained that this was in line with global best practice in the use of technology and automated solutions.
He added that the scheme was designed to elicit automatic compliance with the extant Hotel Occupancy and Restaurant Consumption Tax Law of Lagos State as amended, which imposes a 5 percent Consumption Tax on all expenditures made on products and services at the hospitality outlets in line with section 2 of the Hotel Occupancy and Restaurant Consumption Law of June 2009.
Mr Adebayo added that the ERA System ensures financial accountability and efficiency for collecting agents, accurate deduction and automatic, transparent remittance of consumption tax as well as rewards for consumers.
Chairman of the LIRS, Mr Ayodele Subair, speaking on how the newly adapted technology works, stated that the Electronic Revenue Assurance System using the Electronic Fiscal Device (EFD) is a software application/device that issues invoices and receipts to consumers bearing a unique QR code, detailing the items and/or services ordered and an embedded automation of Consumption Tax remittance in real time.
He said to protect consumers, payments and receipts generated will be tracked and monitored to verify the authenticity of receipts issued.
“We hereby implore owners of restaurants, hotels, nightclubs and event centres in Lagos State to embrace and comply with this new initiative not only because of the legal consequences of its violation but also for its mutual socio-economic benefits,” he said.
LIRS is determined to give back to loyal Consumption Tax payers who request for their receipts generated by collecting Agents with a reward scheme being put in place, he added.
Reacting to the introduction of the ERA Solution to the hospitality industry, Mr Rasheed, owner of Islanders Hotels & Suites in Lagos, agreed that the device would benefit consumers while providing an easier automated accounting solution for his business.
The hotelier, in his statement, said “we have struggled with problems of accountability in our hotel in the past with some staff of questionable character pocketing money that should be coming to the hotel for themselves.
“Once the ERA is installed in our hotel and with consumers requesting for their receipts through the platform, we will be able to keep an accurate account of dealings in our hotels and restaurants.
“More so, we will have no need to stretch our capacity in keeping records for the LIRS in order to avoid being shut down by the government for avoiding taxes since the device helps us remit Consumption Taxes automatically to the government as at when due.”
more recommended stories
SEC: Market Reaction to 2019 Elections Normal, Calls for Caution
By Dipo Olowookere Acting Director-General of.
CBN Sells N187b T-Bills in One Week as Lending Rate Falls
By Dipo Olowookere Treasury bills worth.
Stock Market Records N13b Turnover Last Week Amid Panic Selling
By Dipo Olowookere Transactions at the.
NSE Finally Delists Paints and Coatings Manufacturers Nigeria
By Dipo Olowookere Paints and Coatings.