Nigeria Hotels Association (NHA) has rejected the proposed plan by the federal government to increase Valued Added Tax (VAT) from 5 percent to 7.2 saying such increase will spell doom and emasculate the hospitality industry.
NHA President, Eze Patrick Anyanwu, who disclosed this at a press conference on Thursday in Bauchi, said: “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.”
Anyanwu expressed concerns that the proposed VAT increase would have an adverse effect on the industry, adding that it is largely plagued by several limiting factors such as poor power supply and attendant power tariff debacle, among others.
“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 doom for the industry,” he said.
He noted that on behalf of the National Executive Council of the association across the country, “we vehemently object to this planned increase on VAT as some states in Nigeria will be paying as much as 12.2% VAT.”
He added that 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 growth of Nigeria’s economy,” he added.
Join Daily Trust WhatsApp Community For Quick Access To News and Happenings Around You.
