ACCI calls for Moderation in implementing punishments on Hotels Guilty of Tax Fraud

The Abuja Chamber of Commerce and Industry (ACCI) has advised the Abuja Municipal Area Council (AMAC) about using moderation while threatening to close hotels due to tax fraud issues.

Dr. Al-Mujtaba Abubakar, the president of ACCI, said in a statement on Wednesday that such action would have detrimental effects on the council’s hospitality firms whose responsibilities overlap those of FCT.

Here’s why ACCI says this;

“The confusion over tax evasion is caused by enterprises in the FCT, notably hoteliers, who are unable to decide between paying taxes to AMAC, FCTA, and FIRS for a variety of reasons. Due to hotels’ confusion on who should receive tax payments, business owners now have to pay extra or double taxes. And this is the quickest road to the death of businesses in the FCT, and that cannot be the intention of the AMAC administration,” he said.

Despite acknowledging the crucial role taxes play in the economic growth of a nation or state, Abubakar claimed that the decision to close hotels in the FCT over tax issues will have a detrimental effect on Abuja’s economy.

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“The ACCI, therefore, begs for a lengthening of the deadline taking into account the nation’s economic circumstances. Also, in order to prevent strangling business, the chamber implores the FCT administration to rapidly streamline tax administration in the FCT,” Abubakar said.

Although few slots were permitted for hotel structures in the master plan, he also argued that it was necessary to integrate hotel operations that broke the rules.

“Categorizing these businesses into hotels, guest houses, bed and breakfasts, hostels, and apartments with a clear scope of permissible operations for each category based on the neighborhood will go a long way in encouraging the expansion of the industry instead of closing them down,” he said.

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He stated that the chamber is eager to host a round table discussion with FIRS, FCTA, AMAC, HOFA, enterprises, and other important players within the FCT on matters relating to tax administration, sustenance, and compliance.