Lucky Efese
BENIN CITY-The executive and members of the Business and Hotelier Stakeholders’ Forum, BHSF, Edo State, have expressed concerns over the recent increase in the Consumee Tax in the state and it’s telling effects on business survival in the state.
The group has however appealed to the Executive Governor, His Excellency, Sen. Monday Okpebholo, to consider possible suspension of implementation of the consumer tax in view of current harsh economic realities which have greatly affected the purchasing power of the people.
In a press release dated 20th February 2025 and signed on behalf of the members by Chief Dr. Omogiade Edokpolo, Chairman and Dr. Osado Tabusite, Secretary, respectively, a copy of which was made available to The Nigerian Observer, the hoteliers maintained that the implementation of the tax in the state would not only have spiral effects but would amount to double taxation since many businesses and consumers had already been subjected to various existing taxes.
They argued that if allowed to stand, the tax will further compound the financial burden of the people and also raise doubt about the fairness in the tax system.
They noted that since the state was currently facing economic challenges, as businesses were struggling to even maintain 20% of their customers’ base amidst rising operational costs which had hindered the provision of quality services and enhanced employment level, the consumer tax would raise concerns about the State’s economic viability.
According to them, ”consumer tax implementation would encourage and aid inconsistent tax policies as it would create an uneven playing field that would disadvantage Edo State if it was not applicable in order state and would more or less undermine competitiveness which could result to loss of customers”.
They, however, appealed to the state governor to use his good offices to scrap the consumer tax to promote business growth which multiplier effects would be general prosperity and increased employment opportunities for youths of the State.
They further appealed to government to prioritise policies which support and nurture local businesses rather than imposing additional taxes which could hinder economic growth.
They urged the state government to also engage in strategy dialogue with business leaders and stakeholders, particularly, BHSF members to partner with the state government and chart a way towards achieving alternative viable means of generating revenue, pointing out that its aims are to be committed to fostering a thriving business environment which will encourage investors in the state, as the removal of the tax will be essential for the survival and growth of businesses.
