Hotel operators in Port Harcourt, the Rivers State capital, say that government imposition of taxes on hotels without assessment is counter productive, as it is also capable of scaring investors from the state.

Speaking in an interview with The Tide the Regional Manager of Cirios Hotel Limited which took over The Residency Hotel at Rumuigbo, Mohammed Soliman El-Sayed, said that the taxes are so scary, especially as it is done without assessment of any kind.

The Regional Manager noted that different groups come to the hotel to demand different levies and taxes, stating that there is a serious need for government to provide specific information on what the operators should pay.

“To pay all the taxes, we need to reduce the workforce and this makes the state not to be investors-friendly. They don’t care whether we make profit or not, all they care for is payment,” he said.

He also said that Residency Hotel went down as a result of over blown taxes.

In a related development, the manager of City Crown Hotels, Iwofe Rumuolumeni, Mr Abu Abdullahi said it has been very tough for the hotel since 2010 when the road became bad.

Abdullahi said government should specify the taxes and levies to be paid and the amount to be paid, adding that more than 20 different taxes and levies are paid in a year. Local government asks for payment of N800,000.00 within seven days without caring for how much we make in a year.”

“The amount you need to pay without a corresponding income only discourages investors. We retrenched staff twice last year. We are in total distress and we pray that Iwofe Road will be concluded before the rains become serious,” he said.

Another hotel operator in GRA who pleaded anonymity stressed that there is much potentials in the country and state, noting that corruption and lack of accountability is the bane of development.

“Corruption is affecting every aspect of management at the state and federal levels. If government is honest and serve in sincerity, everybody will take a cue and run result-oriented programmes,” he said.

He, however, blamed what he called over- blown taxes on hotels on the non existence of Port Harcourt Chamber of Commerce, Industry, Mines and Agriculture (PHCCIMA) to intervene in the affairs of hotel management in the state.

Responding to the accusations, the President of PHCCIMA, Engr. Emeka Unachukwu said the issue of taxation is not about hotels, saying that the chamber wants to approach the case holistically.

“We known that certain taxes are supposed to be reviewed or abolished. We want to use constructive negotiation approach because it is wrong to tax companies without evaluation,” he said.

He however noted that hotels that are registered with the chamber feel its presence and are free to bring their problems to the chamber, adding that the body is also negotiating for government to come up with acceptable rates.