Ogun State government said it would deploy an electronic system to monitor compliance with payment of the five percent consumption tax by bar, hotel, event centres, pool and betting house operators in the state.
The government lamented that the compliance level of the law which came into effect since 2012 wasn’t satisfactory since the implementation began, hence the resolve to introduce an electronic (payment) system to ensure compliance as well as blocking leakages.
The state government disclosed this at the weekend through the Chief Executive Officer of its Internal Revenue Service (OGIRS), Adekunle Adeosun, while briefing journalists at the agency’s office in Oke – Mosan, Abeokuta, the state capital.
Adeosun said the tax is usually collected from consumers through operators of bars, hotels, event centres among others, but added that some of the operators “under – declare” the quantum of what the consumers buy that falls within the purview of consumption tax.
According to him, the problem is not necessarily the operators but their workers, who “under report” sales trend to their employers.
He expressed the confidence that the electronic system would help block leakages, bring about compliance and ensures that neither the state government nor the operators is shortchanged.
The OGIRS boss also revealed that with the expiration of Voluntary Assets and Income Declaration Schey (VAIDS) drawing closer by the day, “quite a lot of people” in the state were approaching the office and seeking information on what to do in respect of the Tax amnesty programme.
According to him, the Federal government has resolved to take the VAIDS matter serious when the window period expires by this March 31.