Court bars Lagos State from enforcing hotel tax law

Justice Rilwan Aikawa of a Federal High Court in Lagos has given an order restraining the Lagos State Government from enforcing the provisions of its new Hotel Occupancy and Restaurant (Fiscalisation) Regulations 2017.

Saturday Tribune recalls that the Lagos State Government had introduced a five per cent consumption tax in addition to a five per cent Value Added Tax on every purchase or service rendered by hotels, restaurants, fast food outlets, event centres, bars and night clubs.

But Justice Aikawa had in a ruling on March 21, 2018, restrained the state from further enforcing the law.

The judge said the law would remain suspended until the final determination of a suit filed against the government by the Registered Trustees of Hotel Owners and Managers Association of Lagos.

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The judge also temporarily struck down the Hotel Occupancy and Restaurant Consumption Law Cap H8, Laws of Lagos State 2015.

Specifically, the Judge restrained the state from enforcing or implementing paragraphs 4, 5, 6, 7, 8, and 11 of the Lagos State Hotel Occupancy and Restaurant (Fiscalisation) Regulations 2017.

Justice Aikawa stopped the state and its agents from visiting the plaintiffs hotels for the purpose of installing fiscal electronic device and any other purposes whatsoever in furtherance of the law and the regulations.

The association of hotel owners in Lagos through their lawyer, Mr. Olasupo Shasore (SAN) had filed ex parte application before the court.

Justice Aikawa, after granting the interim restraining orders, adjourned till April 17, 2018 to hear the plaintiffs’ motion on notice.