Consumption Tax is an indirect form of tax levied on spending on goods and services at relaxation centres as well as other hospitality outlets like; Hotels, Restaurants, Eateries, Guest Houses, Event Centres etc.
The Kogi State House of Assembly enacted this Law in 2015. It is to be cited as ‘The TAX ON CONSUMABLE GOODS AND SERVICES (in Hotels, Restaurants, Event centres etc.)’ Law 2015. SECTION 1
In other words, Consumption Tax is simply a Luxury tax charged at 5% on every goods and services consumed in relaxation spots by the privileged few. In essence 5% of whatever is consumed or enjoyed by a Consumer or Customer be added to the total bill in line with SECTION 3.
The owner, managers, operators etc. of this business outfits (hotels, restaurants, event centres….),otherwise refer to as the unpaid agents; are mandated by Law to collect this Tax on behalf of Kogi State Internal Revenue Service, and remit to a designated Internally Generated Revenue Account. SECTION 4
All Hotels, Restaurants and Event Centres affected by this Law must within a period of Thirty (30) days of the commencement of such business or service cause to be registered with Kogi State Internal Revenue Service for the application of the provision of this Law as spelt out in SECTION 10.
Note that the burden of this tax is on the consumer, thereby shielding the capital and profit of the collecting agents from this tax policy.
Be law abiding, pay your tax.