LIRS Issues Update on Hotel Occupancy and Restaurant Consumption Tax in Lagos State


Friday, March 05, 2021 / 01:27 PM / By Wole Obayomi / Header Image Credit: LIRS


The Lagos State Internal Revenue Service (LIRS) recently issued a Public Notice to clarify the definitions of "hotels", "event centres" and "restaurants" in Section 17 of the Hotel Occupancy & Restaurant Consumption (HORC or "Consumption") Law, 2009 and the compliance obligations of their owners for consumption tax.


The LIRS requires the management of these facilities to charge consumption tax on their bills/ invoices and remit the tax to the LIRS on or before the 20th day of each calendar month in the format prescribed in Section 6(1)(b) of the HORC Law, 2009. Further, the LIRS reiterates its intention to commence enforcement of the sanctions provided in the relevant sections of the HORC Law, 2009 for non-compliance with the consumption tax obligation and filing requirements.


For our previous publication on the legality of consumption tax based on two contradictory judgements of the Federal High Court in the cases of Registered Trustees of Hotel Owners and Managers Association of Lagos (RTHMAL) v. Attorney-General of the Federation & Minister of Finance and RTHMAL vs Attorney-General of Lagos State and Federal Inland Revenue Service, refer to our newsletter Issue No. 9.7 of 30 September 2020.


As the two cases are on appeal, it is hoped that the controversy will be resolved when a higher court makes an authoritative pronouncement on the subject. 



* This statement was first published in the Issue 3.1/ March 2021 Newsletter of KPMG of Friday, March 05, 2021. For further enquiries, please contact the author, Wole Obayomi via

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