The executive and members of the Business and Hotelier Stakeholders’ Forum, BHSF, Edo State, have expressed concerns over the recent increase in the Consumer Tax in the state and it’s telling effects on business survival in the state.
However, given the current dire economic conditions that have significantly impacted people’s purchasing power, the organization has urged His Excellency Sen. Monday Okpebholo, the Executive Governor, to take into consideration the possibility of suspending the introduction of the consumer tax.
The hoteliers maintained that the implementation of the tax in the state would not only have spiral effects but also amount to double taxation because many businesses and consumers were already subject to various existing taxes.
This was stated in a press release dated February 20, 2025, which was signed on behalf of the members by Chief Dr. Omogiade Edokpolo, Chairman, and Dr. Osado Tabusite, Secretary, respectively. A copy of the release was made available to newsmen.
They contended that if the tax is upheld, it will increase the financial strain on the populace and cast doubt on the system’s fairness.
They pointed out that the consumer tax would raise questions about the state’s economic viability because businesses were finding it difficult to retain even 20% of their clientele in the face of growing operating costs, which had impeded the delivery of high-quality services and increased employment levels.
According to them, ”consumer tax implementation would encourage and aid inconsistent tax policies as it would create an uneven playing field that would disadvantage Edo State if it was not applicable in order state and would more or less undermine competitiveness which could result to loss of customers”.
However, they urged the state governor to utilize his good offices to repeal the consumer tax in order to encourage company expansion, which would lead to greater employment possibilities for the state’s youth and overall prosperity.
Additionally, they urged the government to put policies that help and develop small businesses ahead of new levies that would impede economic expansion. Its goals are to be dedicated to fostering a thriving business environment, which will encourage investors in the state, as the removal of the tax will be essential for the survival and growth of businesses.
They urged the state government to also engage in strategy dialogue with business leaders and stakeholders, especially BHSF members, to partner with the state government and chart a path towards achieving alternative viable means of generating revenue.
