Court Restrains Lagos State From Enforcing 5% Hotel Tax Law

A Federal High Court in Lagos has restrained the Lagos State
Government from enforcing the provisions of its new Hotel Occupancy
and Restaurant (Fiscalisation) Regulations 2017.

The law introduced a five percent consumption tax in addition to
a five percent Value Added Tax on every purchase or service
rendered by hotels, restaurants, fast food outlets, event centers,
bars and nightclubs in the state.

But in a ruling delivered on March 21, 2018, Justice Rilwan
Aikawa 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 its implementation by the
Registered Trustees of Hotel Owners and Managers Association of
Lagos.

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

He particularly 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 Rilwan 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.”

Akinwunmi Ambode
He made the interim order following an ex parte application taken
before him by the association of hotel owners in Lagos through
their lawyer, Mr. Olasupo Shasore (SAN).

Shasore, who is a former Attorney General and Justice
Commissioner in Lagos State, had prayed the court to stop the state
and its agents from visiting his clients “between March 1 and March
10, 2018, or any other period before or thereafter” pending the
hearing and determination of his clients’ motion on notice dated
March 7, 2018.

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

Joined as defendants in the suit, marked FHC/L/CS/360/2018, are
the Attorney General of Lagos State and the Federal Inland Revenue
Service.

A Federal High Court in Lagos has restrained the Lagos State
Government from enforcing the provisions of its new Hotel Occupancy
and Restaurant (Fiscalisation) Regulations 2017.

The law introduced a five percent consumption tax in addition to
a five percent Value Added Tax on every purchase or service
rendered by hotels, restaurants, fast food outlets, event centers,
bars and nightclubs in the state.

But in a ruling delivered on March 21, 2018, Justice Rilwan
Aikawa 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 its implementation by the
Registered Trustees of Hotel Owners and Managers Association of
Lagos.

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

He particularly 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 Rilwan 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.”

Akinwunmi Ambode
He made the interim order following an ex parte application taken
before him by the association of hotel owners in Lagos through
their lawyer, Mr. Olasupo Shasore (SAN).

Shasore, who is a former Attorney General and Justice
Commissioner in Lagos State, had prayed the court to stop the state
and its agents from visiting his clients “between March 1 and March
10, 2018, or any other period before or thereafter” pending the
hearing and determination of his clients’ motion on notice dated
March 7, 2018.

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

Joined as defendants in the suit, marked FHC/L/CS/360/2018, are
the Attorney General of Lagos State and the Federal Inland Revenue
Service.