Ogun State: Value Added Tax Vs Consumption Tax
Mr Tolu Adegbie, the Executive Chairman of Ondo State Internal Revenue Service (ODIRS), has added a new dimension in the VAT and Consumption tax debate in Nigeria by noting that even if the federal government is to collect VAT (tax on value of transaction), his state will collect consumption tax (tax on local consumption).
“We will implement the law that has been passed by the state and we have done our research and passed our observations and at the appropriate time, the government will take a decision.
“The implementation of consumption law has started now. We have written to hotels in the state, but some are still confused saying it is same as VAT.
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“They are not. While they may both be consumption tax, one is based on sales and goes to specific section of the economy which is hotel and restaurant, while the other is on value on transaction.
“So, those hotels writing to us that VAT case is in court should know that Hotel Consumption Tax is not in court. It’s not subjected to litigation in any court in Nigeria,” he added.