Fg Unveil Plan To Tax Traders, Informal Workers

Federal Government has announced plans to tax traders and informal workers in the new tax scheme.

The Federal Inland Revenue Service (FIRS) of Nigeria announced the implementation of the VAT Direct Initiative.

FIRS stated that the pioneering scheme aimed at facilitating the collection of Value Added Taxes (VAT) from the informal sector while reducing multiple taxations in the informal economy.

In a statement released on Monday, the FIRS revealed its partnership with the Market Traders Association of Nigeria (MATAN).

The collaboration is aimed at collecting and remitting VAT from their members, particularly those operating in the informal sector.

This collaboration involves the utilization of unified systems technology, enabling seamless and efficient VAT payment and remittance.

As the designated agency responsible for collecting VAT and other revenues accruable to the Federal Government, the FIRS recognizes the importance of collaboration with MATAN, the largest participant in Nigeria's informal market space with over 40 million members.

The VAT Direct Initiative seeks to raise awareness of VAT collection and remittance in the marketplace and informal sector.

Additionally, it aims to simplify the process of VAT payment and remittance by leveraging a purpose-built digital platform developed by MATAN.

This digital platform provides members with a unique digital identification card and tracks their turnover, ensuring that VAT obligations are accurately collected and remitted to the FIRS.

By implementing this digital scheme, the FIRS aims to address the issue of multiple taxations in the marketplace.

Furthermore, the agency plans to collaborate with security agencies to combat the activities of unauthorized tax collectors and intermediaries.