Lagos Implements Digital System for Revenue Collection in Hotels and Restaurants
Executive Chairman of LIRS, Ayodele Subair.
Lagos State Internal Revenue Service Implements Digital System for Hotel and Restaurant Revenue Collection.
The Lagos State Internal Revenue Service (LIRS) has introduced a digital approach to the revenue collection process for Hotel Occupancy and Restaurants Consumption Tax in the state. Ayodele Subair, the Executive Chairman of LIRS, conveyed this information in a press statement released on Monday. The new collection method, known as the Eco Fiscal System (EFS), is an automated invoicing solution aimed at transforming the collection of consumption taxes in Lagos.
Subair highlighted that the EFS represents a significant advancement in their ongoing efforts to enhance revenue collection, streamline processes, and improve efficiency in tax administration. This technological evolution aligns with LIRS’ commitment to making tax payment convenient and ensuring compliance with tax laws. The EFS simplifies compliance, enhances accuracy, and addresses the challenges associated with the traditional manual collection process.
The statement emphasized that Hotel Occupancy and Restaurants Consumption Tax (HORCT) collection has historically been a laborious task prone to errors and increased costs due to manual procedures. With the introduction of LIRS’ cutting-edge software, businesses in the hospitality sector can automate and digitize their invoicing and collection processes. The EFS offers real-time online consumption tax billing, collection monitoring,
and instant issuance of receipts with unique invoice numbers. It not only reduces compliance costs but also facilitates easy administration and reconciliation for HORCT collections while fostering transparency.
Subair affirmed that adopting the EFS would enable businesses to ensure accurate calculations, eliminating the risks associated with manual data entry. The system automatically applies relevant tax rates, saving businesses valuable time and resources. The software provides secure and efficient record-keeping, simplifying audits and minimizing compliance risks.
The LIRS chairman encouraged all operators in the hospitality sector to embrace the EFS. He emphasized that the system’s operations are effective immediately, and non-compliance constitutes a contravention of the provisions in Sections 7(1), 8, and 9 of the Hotel Occupancy and Restaurant Consumption Fiscalization Regulation 2017, attracting penalties as stipulated in Sections 11(2) of the HORC Law 2009.
