Jumia Urges FG To Grant Tax Breaks To Hospitality Businesses

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The Managing Director of Jumia’s hotel and flight services, Omolara Adagunodo has urged the Federal Government of Nigeria to grant tax breaks to businesses in the hospitality industry.

Adagunodo who
stated this in a press statement hinged the call on the fact that the
hospitality industry will contribute more than it is currently to
Nigeria’s Gross Domestic Product (GDP) and the economy if it is granted
tax breaks.

Recall in 2017 the federal government released a list
of 27 companies to enjoy the Federal Government tax break under pioneer
status and the hospitality sector was missing.

Adagunodo,
therefore, encouraged the federal government to include the hospitality
sector in the pioneer status so that the sector can also enjoy its many
benefits.

The hospitality sub-sector is currently faced with an
avalanche of taxes: Registration of Hospitality Premises, Stamp Duty,
Nigerian Social Insurance Trust Fund (NSIT), Industrial Training Fund
[ITF] National Pension Commission (PENCOM), Nigerian Tourism Development
Corporation (NTDC), Value Added Tax (VAT), Pay As You Earn (PAYE),
Company Income Tax, Withholding Tax, Liquor License, Food Handlers and
Health Certificate among others.

“The travel and Tourism sector
accounted for 1.9% of total GDP as a direct contribution, and 5.1% as a
total contribution to GDP in 2017. In monetary terms, Travel and Tourism
contributed N2.298 billion to the GDP as a direct contribution and
N6.205 billion as a total contribution to the GDP.

“For jobs, the
sector directly generated 1.2 million jobs, that’s 1.8% of total
employment (and, it’s expected to rise by 4.7% in 2018 to 1.276
million). Whereas total jobs created – both direct and indirect was 3.3
million, that’s 4.8% of total employment, ” Adagunodo added.

“This
percentage GDP contribution will significantly increase as these
businesses will invest the money on boosting service delivery and
overall improvement in the quality of business,” she said.

Source:- Tribuneonlineng

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