The Federal High Court (FHC) recently issued an Order restraining Lagos State Government (LASG) from enforcing both the Hotel Occupancy and Restaurant Consumption Law (Law) and the Hotel Occupancy and Restaurant Consumption (Fiscalisation) Regulation (Regulations) pending the hearing and determination of the case.
The questions before the FHC are summarized below:
- Whether the VAT Act has not 'covered the field' on taxation of goods and services including those consumed in hotels, restaurants and event centres in Lagos State?
- Whether the Regulations are valid in view of the VAT Act?
- Whether by s. 7(1) of the VAT Act, the Federal Inland Revenue Service (FIRS) is the only agency to administer consumption tax in hotels, restaurants and event centres in Lagos State?
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