LIRS begins automated collection of consumption tax from hotels, others

In line with global best practice in the use of technology and automated solutions, the Lagos Internal Revenue Service (LIRS) has introduced recently an Electronic Revenue Assurance (ERA) System for Hotels, Restaurants, Night Clubs and Event Centres in Lagos State to elicit automatic compliance with the extant Hotel Occupancy and Restaurant Consumption Tax Law of Lagos State as amended.

The law imposes a 5% Consumption Tax on all expenditures made on products and services at the hospitality outlets in line with section 2 of the Hotel Occupancy and Restaurant Consumption Law of June 2009.

The ERA System ensures financial accountability and efficiency for collecting Agents, accurate deduction and automatic, transparent remittance of consumption tax as well as rewards for consumers.

Speaking on how the newly adopted technology…