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The President Bola Tinubu-led Nigerian government is set to start collecting Value Added Taxes (VAT) from the informal sector, saying this would reduce multiple taxations in the informal economy.
This was announced by the Federal Inland Revenue Service (FIRS) in a statement released on Monday while revealing that the government was partnering with the Market Traders Association of Nigeria (MATAN) to collect and remit VAT from their members especially those in the informal sector using a unified systems technology.
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
Digital scheme
They also noted that MATAN has a digital platform that enumerates their members giving them a digital ID card and tracks their turnover so that VAT accrued is collected and remitted to the FIRS, adding:
“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
MATAN members will each receive an ID card upon enumeration, which would contain their Tax Identification Number and other personal details
MATAN
The Market Traders Association of Nigeria, founded in 1995, in the statement revealed that it is the largest player in Nigeria’s informal market space with a membership of over 40 million
Peoplesmind
