Abuja Residents Quietly Paying New 5% Entertainment Tax

The Federal Capital Territory, FCT Administration has commenced the implementation of a new 5% Entertainment tax that is added to prices at restaurants, eatries and selected entertainment outlets.

GWG.ng reports that the new entertainment tax brings the total tax on products from such places to 12.5% when the Value Added Tax, VAT is added for offerings within the FCT.

The implementation of the new tax came to light during the Yuletide holidays when holidaymakers were flooded with the new tax.

The restaurants operators are claiming that the tax which they termed ‘entertainment tax’ was approved by the FCT administration.

A highly placed officer in the FCT Internally Revenue Service  confirmed the imposition on the new tax to our correspondent.

The source who didn’t want his name to be quoted argued that while the legal framework for the new tax had been established a long time ago and was only now being implemented.

While confirming the validity of the new tax styled as “entertainment tax,” the source said, “Actually, the law has always been there. Entertainment tax is what we call that law. We charge 5 percent on consumption on hotels and restaurants and what a have you. It goes to the consumers. We have not been implementing it. We just started implementing of recent.

“Even recently, to be precise, we had a press conference last week where the chairman spoke about it. We have started the campaign to educate people about it. So they are actually right.

“It is not all the restaurants, we classified the restaurants. We are talking about the hotels and restaurants.

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