The Federal Government of Nigeria under the leadership of President Bola Ahmed Tinubu is set to commence the collection of Value Added Taxes (VAT) from traders and other people who work in the informal sector of the economy.
This decision was announced by the Federal Inland Revenue Service (FIRS) in a statement released on Monday.
It revealed that the government was partnering with the Market Traders Association of Nigeria (MATAN) to collect and remit levies from their members especially those in the informal sector using a unified systems technology.
The partnership between FIRS and MATAN was termed as VAT Direct Initiative, a collaboration between FIRS and MATAN where MATAN promotes awareness on VAT collection and remittance in the marketplace and informal sector.
The partnership will also simplify VAT payment and remittance for the marketplace and informal sector using a purpose-built digital platform.
The statement read “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.
“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.
Upon enumeration, MATAN members will each get an ID card with their Tax Identification Number and other personal information.
