But instead, she directed me to thoroughly peruse the bill, which showed that the N600 difference was because Consumption tax and Value Added Tax (VAT) charges were included.”xAdedipe said though he paid the amount, he was unhappy about the whole matter, pondering why he should pay VAT and Consumption tax on food at the same time. In 2009, Lagos State promulgated a law that imposed five per cent consumption tax under its Hotel Occupancy and Restaurant Consumption Law. xIn May 2018, the Federal High Court had restrained Lagos State government from enforcing both the Consumption Tax Law and Regulations. xProviding insight on what Consumption tax is, the Social Mobilisation Manager, ActionAid, Mr. Adewale Adeduntan defined Consumption tax as one imposed on goods, services, and other items sold, exchanged, or utilised. He explained that VAT tax is a consumption tax, as it is ultimately borne y by the final consumer.

Source: The Guardian September 26, 2021 03:22 UTC