Ondo govt begins collection of consumption tax from Residents  

Ondo govt begins collection of consumption tax from Residents  



The Ondo State Government said it has commenced the collection of consumption tax from the residents of the state as part of efforts to boost the Internally Generated Revenue of the state.

The government however explained that the consumption tax was different from the contentious Value Added Tax,VAT.

The Executive Chairman of the Ondo State Internal Revenue Service, Mr Tolu Adegbie, stated this at a forum 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 a consumption tax. One is based on sales while the other is on value on transaction. This is only for 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.

According to him, the agency had carried out its research and passed its observation to the state government for consideration.

“We will implement the law that has been passed by the state and we have done our research and we have passed our observation and at the appropriate time, the government will take a decision.

“But if the VAT case is won in court in favour of the state, what happens? It means that we will be collecting VAT,” he stressed.

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