President Bola Ahmed Tinubu.
Tinubu Government has announced a tax on market traders and the informal sector.
Newsone reports that President Bola Ahmed Tinubu‘s Federal Government through the Federal Inland Revenue Service (FIRS) says it has partnered with the Market Traders Association of Nigeria (MATAN) for the easy collection of Value-Added Tax (VAT) from its members — especially those in the informal sector.
This online news platform understands that the agency in a statement issued via its official Twitter handle on Monday, July 3, 2023, said the collaboration, also known as the VAT direct initiative (VDI), would be done through the use of a unified systems technology.
Newsone Nigeria reports that MATAN is the umbrella body for all trading associations in Nigeria founded in 1995. The group is the largest player in Nigeria’s market space with a membership of well over 40 million traders across the country.
FIRS said through the initiative, MATAN is expected to “promote 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”.
“MATAN has a digital platform which enumerates their members giving them a digital ID and tracks their turnover so that VAT accrued is collected and remitted to the FIRS,” the statement reads.
“The VDI is the first of its kind programme that will utilise technology to foster collaboration between FIRS and the marketplace for the collection and remittance of VAT.”
FIRS said the partnership would enable it to tackle multiple taxations in the marketplace through a partnership with security agencies “to curb the activities of touts, miscreants and self-imposed tax collectors involved in illegal tax collection in Nigeria’s market spaces.”
The FIRS said that the VDI will boost VAT revenue generation for the three tiers of government, “which in turn means more money to fund infrastructure, provide social amenities and cater for the welfare of citizens”.
The agency added that in order to ensure compliance and accountability, MATAN members will each receive an identity card upon enumeration.
“This card contains their tax identification number (TIN) and other personal details for tax purposes,” the body said.
“The VDI will have a monitoring and evaluation team comprising of FIRS 11 officers and MATAN members to ensure transparency, accountability, prompt VAT remittance, sustained commitment, and reporting which are vital to building the public confidence in the initiative.”