Jumia urges FG to grant tax break to hospitality businesses
The Managing Director of Jumia’s Hotel and Flight Services, Mrs Omolara Adagunodo, on Friday urged the Federal Government to grant tax break to businesses in the hospitality industry.
Adagunodo said that this was necessary because the hospitality industry would contribute more than it is currently doing to Nigeria’s Gross Domestic Product (GDP) and the economy, if granted tax break.
She recalled that 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.
“We encourage the Federal Government to include the hospitality sector in the pioneer status so that the sector can also enjoy its many benefits.
“The hospitality sector is currently faced with an avalanche of taxes: Registration of Hospitality Premises, Stamp Duty, Nigerian Social Insurance Trust Fund (NSIT) and Industrial Training Fund (ITF).
“Others taxes are: National Pension Commission (PENCOM), Nigerian Tourism Development Corporation (NTDC), Value Added Tax (VAT), Pay As You Earn (PAYE), and Company Income Tax, among others.
“The Travel and Tourism sector accounted for 1.9 per cent of total GDP as a direct contribution and 5.1 per cent as total contribution to GDP in 2017.
“In monetary terms, Travel and Tourism contributed N2.29 billion to the GDP as a direct contribution and N6.20 billion as a total contribution to the GDP, ‘’ Adagunodo said in a statement.
She said that the sector directly generated 1.2 million jobs, which was about 1.8 per cent of total employment and rose by 4.7 per cent in 2018 to 1.27 million.
Adagunodo noted that the total jobs created both directly and indirectly were 3.3 million, which was 4.8 per cent of total employment.
“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. (NAN)