LIRS unveils e-payment for remittance of hotel consumption tax

Posted: March 6, 2018 in general

Lagos TourismThe Lagos State Internal Revenue Service (LIRS) has unveiled an automated invoicing system and technology device known as the Electronic Revenue Assurance system (ERA).

The Electronic Revenue Assurance System (ERA) is a software application/device that issues invoices and receipts to consumers bearing a unique QR code. The receipt will also contain detailing of the items and/or services ordered and an embedded automation of Consumption Tax remittance in real time.

The LIRS payment option which was launched at a stakeholders’ meeting held with hotel and business owners in the hospitality and tourism sector of the state at the Banquet Hall, State House, Alausa, Ikeja on Thursday, is, according to the agency, in line with its effort to leverage on e-payment and multi-modal payment portals.

The stakeholders’ meeting also provided a veritable platform for the LIRS to highlight the benefit of improving profit, sustenance of cash flow and reduction in revenue leakage for hotels, restaurants, nightclubs, bars and event centers owners in Lagos state through the ERA device.

Speaking during the stakeholders meeting on Fiscalisation of Hotel Occupancy and Restaurant Consumption Tax Law, the Lagos State Governor, Mr Akinwumi Ambode disclosed that the state 2017 budget recorded 82 per cent performance.

Ambode who was represented by the Deputy Governor, Idiat Oluranti Adebule reiterated the government’s commitment to making the state one of the largest economy and smartest cities in the world.

“Funds are required to enable government to actualize its objective of the provision of adequate infrastructure and services for the residents of expected of a mega city. Prompt payment of taxes is the way in which government is able to finance its activities.”

Also speaking, the State Commissioner of Finance, Mr Akinyemi Ashade listed the benefits of the introduction of technology on the collection of State Hotel Occupancy and Restaurant Consumption Tax Law to include, enhancing credibility, enhancing access to credit, enhancing easy payment system, help clarify concern of industry stakeholders and to ensure that there is a win-win situation for stakeholders.

He assured the stakeholders who are calling for the enforcement of the tax law across board, both for small restaurants and Mamaput sellers that measures will be put in place to capture every segment of the business, including the well patronised illiterate Mamaput sellers.

He told the stakeholders that they do not need to panic as the tax is not targeted at them, but their customers, stating that the operators are just the collecting agent for the state.

Earlier, chairman LIRS, Mr. Ayodele Subir stated that the electronic revenue system will help facilitate the compliance of Tax Law, just as he explained that this will entrench global best practices.

“The hotels, restaurants, nightclubs, fast food outlets, bars, event centers among others serve as agents of the government for the purpose of remittance of 5percent consumption tax collected from customers through the LIRS new technology, Electronic Revenue Assurance System (ERA),” said Subair.

Subair said the tax payers will benefit from this tax in the area of provision of infrastructure.

LIRS revenue boss pointed out that is not like the state is introducing new tax law, but an already existing law passed in 2017.

In the same vein, the State Commissioner of Economic Planning and Budget, Mr Olusegun Banjo, said the tax law will fill the gap on the revenue process, adding that adequate monitoring system will be factored into the system to ensure compliance.

Remarking, President of Lagos Hoteliers Association, Mr. Adekunle Akilo noted that sensitization and training process for effective utilization of the device should be continuous to help business owners and consumers in the hospitality industry fully embrace the technology.

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