Multiple taxation: FIRS partners with market association on VAT remittances
The Federal Inland Revenue Service (FIRS) has entered into partnership with Market Traders Association of Nigeria (MATAN) to collect and remit Value Added Tax (VAT) from the markets, especially in the informal sector.
The association, which has a membership of well over 40 million across the country’s 774 local governments, and 36 States plus the Federal Capital Territory is the biggest player in Nigeria’s market space.
Details of the FIRS partnership with MATAN was disclosed at a stakeholders engagement programme on the VAT DIRECT Initiative, held in Lagos State on Thursday.
The partnership will see FIRS collaborating with the association to deploy technology to enumerate traders for collecting and remitting VAT to the Service, consequently leading to an expansion of the tax net and increased revenue for the federation.
The VAT DIRECT Initiative (VDI) is a program designed to foster collaboration between the FIRS and the market place, especially the informal sector, in the collection and remittance of VAT, using technology.
Speaking during the stakeholders engagement, Mr. Muhammad Nami, Executive Chairman FIRS noted that the initiative was the first of its kind, and that it was crucial to revenue generation and also to eliminating multiple taxation, especially from the informal sector.
Nami, who is also the chairman of the Joint Tax Board (JTB) further stated that the government was worried about the multiplicity of taxes, and that the Service and JTB were working on various modalities of addressing this challenge and that this partnership has laid a very good foundation for the government to address the issue of multiple taxation and extortion by tax officials, tax agents and touts in the market place.
He further noted that the Service would collaborate with security agencies, especially the Nigeria Police, to deal with illegal tax collection by touts in markets.
“One important area of our collaboration is the issue of providing adequate security in the markets. We are aware of the challenges that you have faced in the past with miscreants, self-imposed tax collection agents, and touts.
“I want to assure you that as part of this initiative, we will be collaborating with the relevant security agencies particularly the Nigeria Police Force to tackle all forms of touting and illegal tax collection by miscreants and keep them away from your markets,” he said.
Mr. Nami further noted that the success of the collaboration would lead to increased revenue for the country, and in turn provide government the needed resources to fund infrastructure and other social amenities.
The FIRS boss also unveiled an identity card that is to be given to each trader upon enumeration. The card contains their tax identification number and other personal details.
