In a bid to increase internally generated revenue, many State Governments have introduced taxes on persons and transactions within their jurisdiction. In 2009, Lagos State, enacted the Hotel Occupancy and Restaurant Consumption Law of Lagos State (Hotel Consumption Law), which imposes consumption tax at 5% on the value of goods and services consumed in hotels, restaurants and event centres within Lagos State. Kano State also enacted a similar law.
The validity of such consumption taxes has been a contentious issue, especially given that the Value Added Tax (VAT) collected by the Federal Government imposes a similar tax on the value of supply of goods and services throughout the Federation. Thus, the issue has been a subject of litigation in different courts and the resulting judgments have given rise to divergent commentaries in recent times.
Source: andersentax.ng
