A Federal High Court in Lagos on Wednesday, fixed April 15, to deliver judgement in a suit filed by the Registered Trustees of Hotel Owners and Managers Association in Lagos, challenging the new Hotel Occupancy and Restaurant Consumption Laws of Lagos State.
Justice Mohammed Aikawa fixed the date for judgement, after counsel representing parties had adopted their various processes before the court.
The suit, marked: FHC/L/CS/360/2018, has the Attorney -General of Lagos State and the Federal Inland Revenue Service (FIRS) as the first and second defendants respectively.
In its suit, the plaintiff was urging the court to strike out the Hotel Occupancy and Restaurant Consumption Law Cap H8, Laws of Lagos State, 2015.
They also advised the court to restrain the State from enforcing or implementing paragraphs 4, 5, 6, 7, 8, and 11 of the Lagos State Hotel Occupancy and Restaurant (Fiscalisation) Regulations 2017.
The law had introduced an increase in consumption tax, in addition to a Value Added Tax (VAT) on every purchase or services rendered by hotels, restaurants, fast food outlets, bars and night clubs.
On March 21, 2018, Justice Aikawa had issued an interim order, restraining the defendant from enforcing the provisions of its new Hotel Occupancy and Restaurant Consumption (Fiscalisation) Regulations 2017, pending the determination of the suit.
When the case was called on Wednesday, Mr Lawal Pedro (SAN) announced appearance for the defendants, while Mr B. Salihu appeared for the plaintiff.
Salihu then sought to withdraw an earlier motion filed before the court, and the court granted and struck out same.
The counsel to the plaintiff, afterwards, proceeded to adopt his originating processes before the court, urging it to grant the prayers sought.
Also, the defence counsel, adopted his counter affidavit before the court in opposition to the originating summons dated March 7, 2018, as well as a counter claim to the suit.
He urged the court to grant the applications as prayed.
After adopting their respective processes, Justice Aikawa, fixed April 15, for judgment.
The News Agency of Nigeria ( NAN) reports that in its suit, the plaintiff is asking the court to restrain the defendants, its agents from visiting members of the plaintiffs “between March 1 and March 10, 2018, or any other period before or thereafter,” pending the determination of the motion on notice.
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The plaintiffs said that in 2009, the Lagos House of Assembly enacted the Hotel Occupancy and Restaurant Consumption Law, which sought to impose tax on goods consumed in hotels, restaurants, event centres or night clubs within Lagos.
They argued that by Section 9 of the Law, the first defendant through the Lagos State Internal Revenue Service (LIRS) was empowered to make regulations for the collection and remittance of taxes, and for proper administration of the Law.
According to the plaintiff, in exercise of its powers, the Chairman of the LIRS made the Hotel Occupancy and Restaurant Consumption (Fiscalisation) Regulation 2017.
They argued that the Regulation was made to set out measures which would allow the first defendant through the LIRS, to commence enforcement of the Law, on members of the plaintiff.
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The plaintiffs , therefore, urged the court to grant their reliefs sought.
Meanwhile, in its counter claim, the defendant sought a declaration, that the plaintiff was obliged to comply with the provisions of the law, as well as its regulations, pursuant to goods and services consumed in hotels and event centres in the Lagos state.
The defence argued that by the Provisions of Section 4(7) of the constitution, provision of the Taxes and Levies Act, and the provision of the Hotel and Occupancy Laws of Lagos State, the defendant was the only lawful body empowered to impose and collect taxes from customers of the plaintiff.
According to the defendant, the constitution of Nigeria vests legislative and taxing power on both the Federal Government for the Federation, and on the State Government for the State.
The defendant also argued that the Lagos State Government represented by the first defendant, was vested with the legislative power and taxing authority by express provisions of the Constitution.
The defence, counsel therefore, argued that pursuant to the Hotel Occupancy and Restaurant Consumption Law 2009, it was the lawful collector.
It added that it would continue to collect tax from customers, on goods and services, consumed in Hotels, Restaurant and event centres in Lagos. (NAN)
