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Hoteliers tackle Kwara government over excessive taxation, harassment, coercion

“Currently, our members pay more than 20 different taxes and levies to the federal, state and local governments,” the hoteliers said.

• September 30, 2023
Kwara State Governor AbdulRahman AbdulRazaq
Kwara State Governor AbdulRahman AbdulRazaq [photo: Facebook]

Hoteliers in Kwara appealed to Governor Abdulrahaman Abdulrazaq on Saturday to save them from harassment, coercion, intimidation, extortion and unlawful locking up their facilities by the state’s revenue agency.

They alleged that officials of the Kwara Internal Revenue Service (KWIRS) regularly locked up their hotels without a court order and that the action could lead to a collapse of the hospitality industry.

President of the Association of Hotel Owners in Kwara, Dauda Akande, and its general secretary, Babatunde Oladunmoye, represented the hoteliers in making the appeal.

They alleged that KWIRS regularly used the police to harass, intimidate, arrest, detain and charge members with criminal offences.

The hoteliers also alleged a complete lack of synergy between KWIRS and the ministries, departments and agencies responsible for fixing and negotiating taxes and levies.

They stated that the lack of synergy had resulted in the serving of “crazy bills’’ on hoteliers as demand notices.

“Currently, our members pay more than 20 different taxes and levies to the federal, state and local governments.

“Over-regulation and multiplicity of taxes is currently a huge disincentive to investments in Kwara’s hospitality and tourism industry,’’ they stated.

The officials also stated that association members were regularly served inaccurate demand notices that included bills dating back to the COVID-19 era when the pandemic demanded the shutting of all hotels.

“We request that commercial properties paying commercial land charges to Kwara State Geographic Information Service be exempted from business premises levy because this amounts to double taxation on the commercial property.

“Agencies established for social services like Kwara Environmental Protection Agency and the Fire Service should be well-funded by the government and not be converted to revenue-generating agencies with yearly revenue targets,’’ the association stressed.

It warned KWIRS to stop locking hotels without a court order since it could not be the judge in its own case, adding that the agency should follow due process in all tax matters.

“Our association may have no other choice than to approach a court of competent jurisdiction for redress if the locking up of our hotels without due process continues,’’ the association also warned.

Responding to the allegations, the spokesperson for the KWIRS, Titi Ogunwale, explained that both parties had been engaged in a series of dialogues and discussions.

“I am surprised to see this coming up again; we have had continuous collaborations with all associations in the state.

“If they are not happy, they can invite us, or we invite them for discussion, which we have been doing.

“We held meetings two weeks ago, and resolution was made by both parties. I do not know where all these claims they are making are coming from,’’ she said.

She observed that the association’s allegations would not help matters and that KWIRS would continue to educate relevant stakeholders on the issue of taxation.

(NAN) 

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