A Lagos Division of the Federal High Court has restrained the state government from enforcing the provisions of its new Hotel Occupancy and Restaurant (Fiscalisation) Regulations 2017.
Delivering the ruling on Wednesday, Rilwan Aikawa, the judge, said the law would remain suspended until the final determination of a suit filed against the government by the Registered Trustees of Hotel Owners and Managers Association of Lagos.
The Lagos government introduced the law last year, charging an extra five per cent consumption tax in addition to a five per cent Value Added Tax on every purchase or service rendered by hotels, restaurants, fast food outlets, event centres, bars, and nightclubs.
The judge temporarily struck down the Hotel Occupancy and Restaurant Consumption Law Cap H8, Laws of Lagos State 2015 and also restrained the state from enforcing or implementing it in some parts of the Lagos State.
The Lagos State government had already begun implementing the law, with the state’s Inland Revenue Service shutting down 20 hotels, restaurants, and event centres last month for failure to remit the taxes.
In his ruling, the judge further stopped the state and its agents from visiting the plaintiff’s hotels “for the purpose of installing fiscal electronic device and any other purposes whatsoever in furtherance of the law and the regulations”.
He made the interim order following an application brought before him by the Association of Hotel Owners in Lagos through their lawyer, Olasupo Shasore.
Joined as defendants in the suit, marked FHC/L/CS/360/2018, are the Attorney-General of Lagos State and the Federal Inland Revenue Service.
Mr. Shasore, a Senior Advocate of Nigeria, is a former Attorney-General and Commissioner for Justice in Lagos State.
He had prayed the court to stop the state and its agents from visiting his clients “between March 1 and March 10, 2018, or any other period before or thereafter” pending the hearing and determination of his clients’ motion on notice dated March 7, 2018.
The judge, Mr. Aikawa, after granting the interim restraining orders, adjourned till April 17, to hear the plaintiffs’ motion on notice.
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