Reports indicate that various dining establishments, including restaurants and fast food outlets, are now applying a five percent consumption tax on food, beverages, and other items sold in these venues across Abuja.
Many patrons and local residents were taken aback to find that these establishments were charging a total of 12.5 percent tax on their purchases.
Restaurant owners assert that this tax, referred to as an "entertainment tax," has received approval from the FCTA.
While numerous individuals expressed their surprise at what they perceived as an unexpected tax, they reluctantly settled their bills and departed.
A senior official from the FCT Internal Revenue Service confirmed the introduction of this new tax on Friday, December 27, 2024.
The official, who requested to remain anonymous, stated that although the tax is newly enforced, the underlying law has existed for some time.
The source explained that the FCT IRS has sanctioned the collection of this new tax, which is categorized under "entertainment law."
The official remarked, “Actually, the law has always been there. Entertainment tax is what we call that law.
“We charge 5 per cent on consumption in hotels and restaurants. It goes to the consumers. We have not been implementing it. We just started implementing it recently.
“Even recently, to be precise, we had a press conference last week where the chairman spoke about it. We have started a campaign to educate people about it. So they are actually right.
“It is not all the restaurants, we classified the restaurants. We are talking about the hotels and restaurants.
“We are actually implementing an entertainment tax. The FCT IRS is mandated to implement it.”