We are collecting Consumption Tax not VAT, Ondo govt tells hoteliers

By Osagie Otabor, Akure

Ondo State Internal Revenue Service ( ODIRS) has told hoteliers in the state that it only commenced collection of Consumption Tax and not Value Added Tax.

Some hoteliers had written to the ODIRS that they would wait for the court to make a pronouncement on who is responsible for collecting VAT before making any payment.

Chairman of ODIRS, Mr Tolu Adegbie, who spoke at a press conference in Akure, said the state could start collecting VAT if the case is won in favour of the states.

Mr. Adegbie said the state Consumption Tax law was passed in 2019 but was suspended in 2020 due to Covid-19 outbreak.

Read Also: We are collecting consumption tax not VAT, Ondo tells hoteliers

Adegbie stated that hoteliers and others were finding it difficult to believe that consumption tax is different from VAT.

The ODIRS Chairman also disclosed that over 80 per cent of intra-state commercial drivers did not have valid driver’s licence.

Adegbie said the compulsory registration ordered by the state government to address insecurity and criminalities uncovered those without valid driver’s licence.

Senior Special Assistant to the State Governor on Special Duties and Strategies, Dr. Doyin Odebowale, said that the government would commence impounding of unregistered vehicles as well as prosecuting those without valid driver’s licence.