The Federal Government of Nigeria through the Federal Inland Revenue Service (FIRS) has announced a VAT Direct Initiative (VDI) which it says would enable FG collect Value Added Tax from the informal sector and markets.
This was revealed by the FIRS in a statement on Monday. FIRS said it’s partnering with Market Traders Association of Nigeria (MATAN) under the initiative “to collect and remit Value Added Tax (VAT) from their members-especially those in the informal sector-using a unified systems technology.”
MATAN, founded in 1995, is the umbrella body for all trading associations in Nigeria. It’s the largest player in Nigeria’s market space with a membership of well over 40 million traders across the country.
According to the FIRS, “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.”
Under VAT Direct Initiative, MATAN will promote “awareness on VAT collection and remittance in the market place and informal sector, while also simplifying VAT payment and remittance for the market place and informal sector using a purpose-built digital platform.”
“MATAN members will each receive an ldentity Card upon enumeration. This card contains their Tax ldentification Number (TIN) and other personal details for tax purposes.
“Through this initiative the FIRS will help tackle multiple taxation in the market place through 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,” FIRS added.
“The VAT Direct Initiative (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.”
FIRS said The VAT Direct Initiative (VDI) will have a monitoring and evaluation team comprising of FIRS officers and MATAN members to ensure transparency, accountability, prompt VAT remittance, sustained commitment and reporting which the service said are vital to build the public confidence in the initiative.
The FIRS is the agency responsible for assessing, collecting and accounting for tax and other revenues accruable to the Federal Government of Nigeria. It is responsible for the administration of Value Added Tax in Nigeria.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
