Restaurant and hotel patrons in Abuja now face a 12.5% total tax on their bills following the Federal Capital Territory Administration’s implementation of an additional 5% consumption levy.
The tax, which took effect Friday, applies to selected restaurants, bars, clubs, and hotels in the capital territory.
While some establishments are labelling it as an entertainment tax, FCT Internal Revenue Service officials confirmed it as a consumption tax that existed in law but wasn’t previously enforced.
The new charge affects only classified restaurants and hotels, not all dining establishments. Despite customer complaints about the sudden implementation, patrons across the capital have been paying the increased bills.
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