Delta State Consumption Tax Bill Scales Second Reading

The Delta State House of Assembly on Wednesday May 31, 2017, passed the Delta State Hotels Occupancy, Restaurant and Departmental Stores Consumption Tax Bill through second reading.

The Bill to provide for a law to impose and collect through Electronic Fiscal Device or Electronic Cash Register, Consumption Tax on Goods and Services bought and consumed in hotels, restaurants, departmental stores and entertainment centres passed through second reading following a motion moved by the Majority Leader, Hon. Tim Owhefere and was seconded by Hon. Okoh Festus.

While opening the debate for the bill, the Majority Leader said, the bill is all about an attempt to sure-up the revenue base of this state

“We are all aware that Government has been preaching less dependence on oil as form of revenue. What this Bill seeks to do is to ensure that for every item purchased in a hotel, restaurant, supermarket, a percentage of their the amount paid by the consumer is remitted back as Tax to the Government as consumption tax.

5% of what the consumer pays is what this bill is talking about excluding VAT. The very essence is to ensure that for any item you pick, a token goes back to the government as tax. This bill will make every owner of a hotel or supermarket as a collecting agent, who collects this and remit back to the government coffers and any money accruing to government is directly under the Delta State Board of Internal Revenue or a consultant so appointed by the state. The essence of this is that the money collected is properly accounted for and judiciously used.”

After receiving majority support by House members, the bill was committed to an Ad Hoc Committee chaired by Hon. Oboro Preyor and to report in seven days.