Market Traders To Pay More Taxes As FIRS Mandates New Regulations



The VAT Direct Initiative, a plan to enable the government to collect Value Added Taxes from the informal sector and decrease various taxes in the informal economy, was announced by the Nigerian government through the Federal Inland Revenue Service (FIRS).

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This information was made public by the FIRS on Monday. It declared that it would collaborate with the Market Traders Association of Nigeria to use unified systems technology to collect and send VAT from its members, particularly those in the informal sector.

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.”

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.


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