…Enugu State Internal Revenue Service Says Implementation of Purchase Tax Law will Boost State Revenue
Enugu, Nigeria – Enugu State government has announced the activation of the Purchase Tax law in the state. This was made public this morning by the new Chairman of the Enugu State Internal Revenue Service (ESiRS), Mr. Emmanuel Ekene Nnamani, in an interview with newsmen. This move, which aligns with Section 85 of the Finance Law, CAP 77 Laws of Enugu State 2004, as amended, is aimed at enhancing the state’s revenue stream.
According to Mr. Nnamani, the Purchase Tax law imposes a 5% tax obligation on customers of hotels and 10% on clients of media firms within Enugu State. This development is a significant step towards generating additional funds for the state, which will be used to fulfill various promises made to the people of Enugu State including the provision of potable water, a pledge previously made by Governor Peter Mbah.
Mr. Nnamani elaborated on the scope of the Purchase Tax, explaining that it encompasses all sales and services rendered by hotels and all adverts placement in media houses operating within the state. These services include but not limited to charges for rooms, halls, liquor, advertising, and commercial placements. The 5% Purchase Tax on Hotels and 10% on media houses respectively collected on these transactions are required to be remitted to the state tax office before the 10th of the following month by the respective hotels and media establishments.
Enugu State Internal Revenue Service ESiRS logo
This taxation framework is in line with the sales tax systems implemented in other Nigerian states, including Lagos, and is expected to provide a substantial source of revenue for Enugu State government. The Chairman emphasized that this tax measure is an essential step towards realizing various infrastructure development projects that the state government has promised to undertake for the benefit of Enugu residents.
The Purchase Tax law activation is set to go live on Friday, September 29, 2023. Following this development, hotels and media houses operating within Enugu State will be required to commence remittances of the 5% and 10% Purchase Tax respectively as expected.
The implementation of this taxation mechanism represents a strategic move by the Enugu State government to bolster its revenue collection efforts while concurrently fulfilling commitments to its citizens. The funds generated through the Purchase Tax are expected to play a pivotal role in addressing critical infrastructure needs and enhancing the overall quality of life for residents in Enugu State.
