Nigerians are reacting after an Abuja-based hotel, Jasmine Hotels and restaurant lamented the hefty radio and television licence it was charged.
In a photo shared online, the Abuja Municipal Area Council on Wednesday, January 27 reportedly charged the hotel N500,000 as radio and television fee for 2021.
The tax document ordered that the money be paid within three weeks from the date of notice. A default of payment may result to the hotel management might arraigned before a mobile court or a possible shutdown of the hotel premises.
Radio and television licence is a levy collected by local governments across the country from any business or individual that owns or controls any radio or television instrument.
The Abuja Municipal Area Council is the local government responsible for administration of the city.
Amid criticism, the council had at different times claimed it is empowered by section 7 (4th schedule) of the 1999 Constitution and the AMAC Radio Television Bye law to charge the fees.
The section describing the functions of a local government council included that they are charged with the ” collection of rates, radio and television licences”.
The annual maximum for this license is N1, 000, 000.00 for business under category “A” like head-offices of multi-national companies, banks and oil companies while the annual minimum is N3,500 for individuals living in self-contain apartments.
The hefty license fee has generated outrage online as some Nigerians express their shock about the tax while others ask for the purpose of the tax.