ICYMI: Read Details As FG Set To Collect VAT From Market Traders, Others

The Nigerian Government through the Federal Inland Revenue Service, has announced the VAT Direct Initiative, a scheme aimed towards enabling the government to collect Value Added Taxes from the informal sector and reduce multiple taxations in the informal economy.

The FIRS disclosed this in a statement on Monday. It stated that it would partner with the Market Traders Association of Nigeria to collect and remit VAT from its members, particularly those in the informal sector using a unified systems technology.

The statement partly read, “A collaboration between FIRS and MATAN where MATAN promotes awareness on VAT collection and remittance in the marketplace and informal sector, while also simplifying VAT payment and remittance for the marketplace and informal sector using a purpose-built digital platform.”

 

ICYMI: Read Details As FG Set To Collect VAT From Market Traders, Others

 

According to the FIRS, the scheme will help tackle multiple taxations in the marketplace through partnerships with security agencies to curb the activities of touts and self-imposed tax collectors.

“This will also boost VAR revenue generation for the three tiers of government, which in turn means more money to fund infrastructure and social amenities,” the statement added.

MATAN members will each receive an ID card upon enumeration, which would contain their Tax Identification Number and other personal details.

The move is coming at a time Nigerians are groaning under the burden of fuel subsidy removal and foreign exchange reforms.

There are indications some informal sector groups may protest the new tax being imposed by the FIRS.

BY IYABO AINA

Publisher Of News Rain Nigeria