Hotel Licence Bill RSHA Cautions Against Multiple Taxation Of Investors

Members of the Rivers State House of Assembly have called for a critical look at the proposed bill on the establishment of state hotel licence agency to avoid multiple taxations that would chase away investors in the state.

The lawmakers made their views known during the debate on the state Hotel Licence Bill, 2009 after it passed its second reading at the floor of the House, last Wednesday.

The lawmakers were of the opinion that having a hotel licence agency in the state would make the state’s law on tourism development ineffective, adding that the Tourism Bill passed by the House had already captured the intention of the proposed bill as well as the interest of the state in that regard.

Taken lead on the debate, Hon. Golden Chioma, (Etche I) while commending the sponsor of the bill for his courage, observed that page 19 of  the bill if passed into law would create a difficult environment for hotel operators in the state.

According to him, the N1 million proposed charge imposed per room annually for five star hotels would adversely affect the operators of the business in the state, adding that the bill would not encourage the tourism programme of the present administration.

“Section 19 of the bill if passed into law, would make some hotels in the state like the Presidential Hotel not to be in existence. We are supposed to encourage investors and not to chase them out. The one million naira charges as proposed in this bill would make hotel business in the state a difficult one”, he stated.

He therefore, urged his colleagues to take a second look at the matter so as to encourage business sustainability in the state.

Also speaking, Hon. Henry Ogiri (Abua/Odual), Tamunosisi Gogo Jaja (Opobo/Nkoro) and Hon. Maureen Tamuno (Ogu/Bolo) stated that multiple taxes through the establishment of the licence agency would discourage hotel business as well as affect tourism development in the state.

The lawmakers suggested that relevant agencies and authorities should be consulted before passing the bill into law, so as to avoid unnecessary levies and taxes to be imposed on hotel operators as doing otherwise was capable of crippling hotel business activities in the state.

They also urged the House to tarry a while before passing the bill into law, adding that before a hotel was established in any state, it must pass a registration process through the National Tourism Development Board.

However, in their own views, Hon Chidi Lloyd (Emohua), sponsor of the bill and Hon. Hope Ikiriko (Ahoada West) explained that the essence of the bill was to document customers that check into hotels in the state.

The lawmakers were of the opinion that most of the crimes in the state were been perpetrated by some people who checked into various hotels in the state and carry out their nefarious activities without being noticed.

They opined that the bill when passed into law would promote sanity in hotel operations in the state. The lawmakers pleaded with their colleagues to give the bill the support it deserved so that the state would benefit from the intention of the bill.

In his ruling, the Speaker of the House of Assembly, Rt. Hon Tonye Harry who presided over the session, thanked the lawmakers for their contributions during the debate.

Hon Harry while committing the bill into the committee state directed the House Committee on Commerce and Industry chaired by Hon. Emmanuel Okatta to ensure that all the sentiments raised by the lawmakers on the bill were taken into consideration.

Anita Aluka