The Nigeria Hotels Association (tax) has rejected the proposed plan by the Federal Government to increase Valued Added Tax (VAT) from 5 per cent to 7.2 saying it will emasculate the hospitality industry.
National President of NHA, Eze Patrick Anyanwu, expressed the concern at a press conference held at Obuna Royal Hotel, Bauchi, on Thursday.
Anyanwu lamented that the proposed VAT increase would have an adverse effect on the industry saying it is largely plagued by several limiting factors such as poor power supply attendant power tarrif debacle.
He said: “While some sectors in Nigeria enjoy some fiscal incentives, the hospitality industry, a major player in job creation and poverty alleviation with meaningful contributions to Gross Domestic Product (GDP) had continued to wallow under a debilitating tax Regime.
“It may be unknown to the Federal Executive Council (FEC) that some states in Nigeria had imposed 5 % consumption tax on hotels and other hospitality related businesses in the country, as such increasing VAT will spell a doom for the industry.”
The National President of NHA said on behalf of the National Executive Council of the association across the country, “we vehemently object to this plan increase on VAT as some States in Nigeria will be paying as much as 12.2 % VAT”
He argued that although, the Federal Executive Council cannot unilaterally work on the VAT Act without recourse to the National Assembly, “we call on President Muhammadu Buhari to please have a rethink on this matter and shelve the idea for the idea for the growth of the economy.”
