Ondo Grants Tax Relief, Waivers to Businesses

The Ondo State Government has introduced tax relief and incentives for taxpayers and businesses to cushion the impact of COVID-19 pandemic. The Executive Chairman of the state Internal Revenue Services (ODIRS), Mr. Tolu Adegbie, disclosed this during a chat with journalists on Monday. Adegbie said ODIRS has donated 1,800 units of Personally Protective Equipment (PPE) to all the revenue generating Ministries, Departments and Agencies (MDAs) in the state. He said the donation of the PPE was in addition to the donation of N1.364million by the staff of ODIRS to the state COVID-19 committee. The chairman of ODIRS noted that under the tax waiver, the government has suspended implementation of the Hotel, Restaurant and Event Centre Consumption Tax. According to him, tax due to start on June 1, 2020, is suspended in view of the peculiarly harsh impact suffered by the entertainment and hospitality sectors. Adegbie also disclosed that the state government has also suspended the full implementation of the Land Use Charge rates based on property valuation. He said: "The existing amnesty rates for residential property will subsist as follows: High Value Zone (HVZ), N7,000 to 10,000; Medium Value Zone (MVZ), N3,000 to N5,000, and Base Value Zone (BVZ), N1,000.00 to N3,000 per annum. "Penalty and interest on arrears of Land Use Charge from the year 2017 to 2019 is hereby waived for residential property. This waiver applies to those who make payment on or before December 31, 2020." He also disclosed that the minimum tax payable under the Presumptive Tax Regime (Artisans, Market Women among others) in the state has been reduced by 50 percent for the year 2020 only. "The deadline for the submission of Form A for employees and Annual Returns in accordance with Sections 41 (3) & 81 (1-3) of the Personal Income Tax Act (PITA) 2011 as amended for companies operating in Ondo State is extended to September 30, 2020. "The penalty hitherto being charged on late remittance of Pay As You Earn (PAYE) deductions has been waived between March and September 2020 for all sectors," Adegbie stated. The ODIRS chairman enjoined members of the public and stakeholders to seize the opportunity of waivers and incentives provided by the state government by performing their civic responsibilities.