The Federal High Court in Lagos
has restrained the Governor Ambode led Lagos State Government from enforcing
the provisions of its new Hotel Occupancy and Restaurant (Fiscalisation)
Regulations 2017.
The law introduced a 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 night clubs.
In his ruling, Justice Rilwan
Aikawa 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 judge also temporarily struck
down the Hotel Occupancy and Restaurant Consumption Law Cap H8, Laws of Lagos
State 2015.
He particularly restrained the
state from enforcing or implementing paragraphs 4, 5, 6, 7, 8, and 11 of the
Lagos State Hotel Occupancy and Restaurant (Fiscalisation) Regulations 2017.
Justice Rilwan Aikawa stopped the
state and its agents from visiting the plaintiffs 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 ex parte application taken before him by the association of hotel
owners in Lagos through their lawyer, Mr. Olasupo Shasore (SAN).
Shasore, who is a former attorney
general and justice commissioner in Lagos State, 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.
Justice Aikawa, after granting
the interim restraining orders, adjourned till April 17, 2018 to hear the
plaintiffs’ motion on notice.
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