Residents of Abuja have expressed dissatisfaction over the Federal Capital Territory Administration’s (FCTA) implementation of a 12.5% consumption tax on food, drinks, and other consumables at restaurants, bars, clubs, and hotels across the city.
The newly implemented tax comprises a 5% consumption charge and an additional levy, which is now reflected on bills as an “entertainment tax.”
Many customers visiting eateries and hotels during the festive season were surprised by the additional cost, which led to widespread frustration and reluctant payments.
Restaurant operators confirmed that the tax had been approved by the FCTA, although some expressed surprise at the intensity of the public’s reaction.
A senior officer from the FCT Internal Revenue Service (IRS), who spoke anonymously, clarified that the tax law has been in existence for some time and is now being enforced as part of the FCTA’s effort to educate the public about their obligations.
The FCTA defended the initiative, explaining that it aims to boost revenue generation and support the city’s economic growth. However, residents remain concerned about the financial burden during the Yuletide season.
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