The executive members of the Business and Hotelier Stakeholders’ Forum (BHSF) in Edo State have expressed deep concerns regarding the recent increase in the Consumer Tax and its potential negative impact on business survival in the state.
In light of the current harsh economic conditions, the group has appealed to Edo State Governor, His Excellency, Sen. Monday Okpebholo, to consider suspending the implementation of the consumer tax, citing the significant strain it could place on businesses and the purchasing power of the people.
In a press release dated February 20, 2025, signed by Chief Dr. Omogiade Edokpolo, Chairman, and Dr. Osado Tabusite, Secretary, and made available to The Nigerian Observer, the hoteliers argued that the new tax would have a cascading effect on businesses, effectively amounting to double taxation, as many businesses and consumers are already subjected to various existing taxes.
The group emphasized that, if allowed to stand, the tax would exacerbate the financial burdens of the people and raise concerns about the fairness of the tax system in the state. They pointed out that businesses in the state are already grappling with economic difficulties, struggling to retain even 20% of their customer base due to rising operational costs, which have also impacted the quality of services and employment levels. The introduction of the consumer tax would further strain businesses and add to the financial pressure on citizens, they argued.
The group also warned that the implementation of the tax could encourage inconsistent tax policies, creating an uneven playing field and placing Edo State at a competitive disadvantage compared to other states where such a tax may not be applied. This, they feared, could lead to the loss of customers and ultimately harm the state’s economic viability.
In their appeal to Governor Okpebholo, the stakeholders urged the state government to scrap the consumer tax in order to promote business growth, which they believe would lead to greater prosperity and increased employment opportunities, particularly for the youth. They further called on the government to prioritize policies that nurture local businesses, rather than imposing additional taxes that could stifle economic growth.
Additionally, the group urged the state government to engage in strategic dialogue with business leaders and stakeholders, particularly BHSF members, to explore alternative, viable means of generating revenue. They stressed that fostering a thriving business environment and encouraging investment in the state are key priorities, and that removing the consumer tax is essential for the survival and growth of businesses in Edo State.
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