By Fatima Muriana
The Ondo State Internal Revenue Service, ODIRS, has clarified that the payment of business premises levies by operators of private establishments across the state is a legal requirement rather than an enforcement exercise.
The Director, MDA , at the agency, Mr Rotimi Olafinlayi made this known at a revenue stakeholders meeting held in Akure, the Ondo State capital.
Olafinlayi who represented the state chairman of ODIRS explained that once a business operates from a physical location, the law mandates the payment of business premises levies, stressing that compliance should not be viewed as a coercive measure by the government.
“Once you have a place where you conduct business, the law requires you to pay business premises levy. It is not an enforcement issue; it is a legal obligation,” he said.
According to him, several private establishments —particularly private schools and hospitals—had yet to fully comply with the payment of the levy, despite operating as profit-oriented ventures.
He disclosed that both approved and unapproved private schools are required by law to pay the levy, adding that government already has data on private schools operating across all local government areas of the state.
Olafinlayi further clarified that private hospitals are also legally required to pay business premises levies separately from Pay-As-You-Earn (PAYE) taxes, explaining that PAYE clearance only applies to income earned from salaried employment and does not exempt business owners from paying levies on their private enterprises.
While admitting that there is room for improvement in revenue performance, he urged revenue officers to familiarise themselves thoroughly with relevant tax laws and regulations to engage taxpayers more effectively and confidently.
He also emphasised the importance of taxpayer education and stronger collaboration among revenue-generating agencies, noting that informed engagement would reduce disputes and resistance from business owners.
The engagement, he said, forms part of the state government’s broader efforts to strengthen internally generated revenue and ensure sustainable funding for development across Ondo State.
He affirmed that improved compliance will help increase the revenue generation in the state.