Residents of Abuja have expressed frustration after discovering that the Federal Capital Territory Administration (FCTA) has imposed a 12.5% consumption tax on food, drinks, and other consumables at restaurants, bars, clubs, and hotels across the city.
This new tax, which includes a 5% consumption charge, brings the total tax on items purchased in eateries to 12.5%.
Customers visiting restaurants, hotels, and fast-food joints were shocked to see the additional charge labelled as an “entertainment tax” on their bills.
Many residents were alarmed by the unexpected increase, especially during the festive season, and begrudgingly paid the extra amount.
Restaurant operators confirmed that the tax had been approved by the FCTA, though some were surprised by the public’s reaction.
A senior officer in the FCT Internal Revenue Service (IRS), speaking on condition of anonymity to The Nation, confirmed the new tax, noting that while it is being newly implemented, the law has been in existence for some time.
According to the officer, the tax applies to designated hotels and restaurants within the city and is part of a campaign by the FCTA to educate the public about the charge.
Despite the confusion, the FCTA assured that the new tax would help generate revenue for the administration and support the city’s growing economy.
