In a recent announcement, the Lagos State Internal Revenue Service (LIRS) has unveiled the digitalization of revenue collection for Hotel Occupancy and Restaurants Consumption Tax.
The Executive Chairman of LIRS, Ayodele Subair, in a press statement, revealed that the new system, called the Eco Fiscal System (EFS), aims to revolutionize the collection of consumption taxes in Lagos state.
The EFS is described as an automated invoicing solution designed to bring convenience to tax payments and enhance compliance with tax laws.
Subair emphasized that this technological advancement represents a significant leap in efforts to improve revenue collection, streamline processes, and boost efficiency in tax administration.
The statement read in part, “This technological advancement marks a significant leap in our continuous efforts to enhance revenue collection, streamline processes, and improve efficiency in tax administration. It simplifies compliance and improves accuracy.
“Traditionally, HORCT collection has been a tedious task for operators in the past; the manual process often led to errors, penalties, and increased costs.
“However, with LIRS’ cutting-edge software, businesses can now automate and digitize their invoicing and collection processes.
“Built with operators in this sector in mind, EFS offers real-time online consumption tax billing, collection monitoring, and instant issuance of receipts with a unique invoice number. It also reduces compliance costs, facilitates easy administration and reconciliation for HORCT collections, and fosters transparency,” it emphasized.
Subair highlighted the system’s ability to ensure accurate calculations, eliminating the risks associated with manual data entry, he stated, “The system automatically applies relevant tax rates, saving businesses valuable time and resources. He added that the software provides secure and efficient record-keeping, simplifying audits and minimizing compliance risks in Lagos.
“Our goal is to empower businesses with innovative solutions that enhance their operational efficiency and minimise compliance challenges. Businesses can focus on their core operations, leaving the complex task of tax compliance to our reliable and automated system.”
Businesses in the hospitality sector are urged to adopt the EFS immediately, as operations on the system are now effective. Failure to comply with this digitalized revenue collection system is considered a contravention of the provisions in Sections 7(1), 8, and 9 of the Hotel Occupancy and Restaurant Consumption Fiscalization Regulation 2017. Penalties for non-compliance are stipulated in Sections 11(2) of the HORC Law 2009. #Lagos