Oyo State Hoteliers Association of Nigeria has kicked against the consumption tax introduced by Governor Seyi Makinde’s government in May.

The association expressed its misgivings in a communique issued in Ibadan on Tuesday at the end of its board of trustees meeting.

“Our survival is at risk because to pay the consumption tax as well as VAT to FIRS will be suicidal for the industry,’’ the association declared.

The communique was jointly signed by the association’s president, Ayodele Ogundele, the vice-president, Joseph Emoabino and Adekunle Adesanya, the spokesperson, and the financial secretary, Adetona Ibraheem.

The hoteliers stated that the charge amounted to double taxation, as members pay 7.5 per cent VAT to the Federal Inland Revenue Service (FIRS).

They lamented that after managing to survive the challenges of COVID-19, hoteliers experienced massive inflation and a dearth of workers.

The hoteliers also complained that the lack of electricity and increase in the price of diesel to power generators had become an albatross pushing businesses to the verge of collapse.

The association added that paying multiple taxes and outrageous bills to the government had made businesses crash.

“All hoteliers are currently running at below 50 per cent of capacity because of the cost of electricity generation. We are no longer generating enough money to pay and take care of our staff, so they are leaving even when we need them the most,’’ explained the hoteliers.

The association also remarked that the tourism and hospitality industry was the largest employer of labour that could not toy with staff’s welfare.

(NAN)