Court stops LASG from enforcing 5% hotel tax law

Justice Rilwan Aikawa, sitting at the 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 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 in a ruling on March 21, 2018, the court restrained the
state from further enforcing the law.

The court 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.

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.”

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.

Justice Rilwan Aikawa, sitting at the 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 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 in a ruling on March 21, 2018, the court restrained the
state from further enforcing the law.

The court 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.

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.”

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.