To enable the FG to collect taxes from the informal sector, President Bola Ahmed Tinubu’s administration has announced the Value Added Tax Direct Initiative.
On Monday, the Federal Inland Revenue Service, or FIRS, made this information public in a tweet.
In order to collect and send VAT from their members, particularly those working in the informal sector, FIRS is anticipated to collaborate with the Market Traders Association of Nigeria, or MATAN.
“A partnership between FIRS and MATAN to raise awareness about VAT collection and remittance in the market and informal sector, while streamlining VAT payment and remittance for the market and informal sector using a purpose-built digital platform.”.
The statement continued, “This will also increase the three tiers of government’s ability to generate VAR revenue, which will result in more resources available to pay for public infrastructure and amenities.
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In the first quarter of 2023, Nigeria collected N1.18 trillion in VAT and corporate income tax, according to the National Bureau’s most recent report.
The Debt Management Office recently advised Nigeria that it needed to expand its tax base in order to sustain its rising debt burden, which is currently hovering around N49.85 trillion.
