The Federal Inland Revenue Service (FIRS) will start collecting taxes from market traders or the informal sector on behalf of the Federal Government.
In a statement released on Monday, FIRS said it has created an initiative called VAT Direct in collaboration with the Market Traders Association of Nigeria (MATAN).
The initiative is expected to ease tax collection from the market traders and also curb multiple taxations experienced in the informal sector.
FIRS’ partnership with MATAN gives the tax agency access to tax 40 million members of the group, which was founded in 1995.
“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,” FIRS said in a statement.
According to the FIRS, the partnership will increase the revenue generation of the federal, state and local governments, making more money available for infrastructure and social amenities.
“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 reads.
Members of MATAN will obtain their Tax Identification Number (TIN) and other personal details through the ID card that will be issued to them after enumeration through the group’s digital platform used to track their turnover.
The FIRS said: “The Initiative is the first of its kind that will utilize technology to foster collaboration between the FIRS and the marketplace for the collection and remittance of VAT.”
Source: FIRS to tax informal sector, track 40m market traders’ revenues (ripplesnigeria.com)