Residents of Delta state will henceforth pay an extra 5 per cent of the cost of goods and services consumed and employed across various ranges commercial transactions as the state government determines to enforce a new tax law.
The new tax law- the Delta State Occupancy, Restaurants and Departmental Stores Consumption Tax, is said to be the localised form of the Value Added Tax (VAT), which the federal government had been drawing on goods and services since the era Chief Olusegun Obasanjo-led government.
Announcing the resolve to enforce the new law on Thursday, the Delta State Board of Internal Revenue (DBIR), during a press briefing at its head office in Warri, urged all the people of the state to comply with the law, which had been in effect since June 13, 2017.
It added that it was its responsibility to ensure that the law is effected and complied to by all outlets giving out services or selling consumable goods.
Speaking on the law, the Executive Chairman of the DBIR, Sir Monday Onyema, explained that the gradual dwindling finances, particularly from the federation account, underscored the compelling need to introduce the new tax among other tax types collected in other climes, but hitherto not introduced in Delta.
Onyema, who was represented at the briefing by the board’s Secretary, Chief Mike Edegware, appealed to all the people living and doing business in the state to patriotically obey the law.
He stressed further that stressed that the board, in the first phase, was engaged in deliberate sensitization and enlightenment to prepare all stakeholders for compliance ahead of imminent implementation, appealing for the public to get acquainted as non compliance also carries sanction
“The law, excluding Value Added Tax (VAT), imposes 5% tax on the total bill issued to a customer who pays for the use or possession of any hotel, facility or event center or purchases consumable goods or services in any restaurant, whether or not located within a hotel or goods and services within a departmental or supermarket in the state.
“While the tax is paid by the consuming public, the responsibility to collect the tax imposed is that of a person owning, managing or, controlling any business or supply any goods or services chargeable under Section 3 of the law”, the board explained.