THE Ondo State Government said it had begun the collection of consumption tax from residents of the state in a bid to boost its Internally Generated Revenue.
The government, however, explained that the consumption tax was different from the contentious Value Added Tax.
The Executive Chairman of the Ondo State Internal Revenue Service, Mr Tolu Adegbie, stated this while speaking with our correspondent in Akure, the state capital.
He noted that that the consumption tax was passed by the state House of Assembly and signed into law in 2019, but the implementation of the law was suspended in 2020 because of the outbreak of the COVID-19 that hit the economy of the country.
He declared that the state had resumed the implementation of the law.
Adegbie said, “The implementation of consumption tax law has started now. We have written to hotels in the state, but some are still confused, saying that this tax is the same as VAT.
“They are not. While they may both be consumption tax, one is based on sales while other is on value on transaction. This is only on hotels and restaurants.
“So, those hotels writing to us that VAT case is in court should know that this one is not in court. It’s not subjected to litigation.”
On the VAT issue which is already in the court, the ODIRS chairman said the state would implement whatever is stated in the law in respect to VAT collection in the state.
He said the agency had carried out its research and passed its observation to the state government for consideration.
Punch
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