The government of President Bola Ahmed Tinubu has unveiled the Value Added Tax Direct Initiative, which will allow the government to collect taxes from the informal sector.
On Monday, the Federal Inland Revenue Service, or FIRS, issued a statement via its Twitter feed.
The FIRS is intended to collaborate with the Market Traders Association of Nigeria (MATAN) to collect and remit VAT from its members, particularly those in the informal sector.
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“A collaboration between FIRS and MATAN to promote awareness on VAT collection and remittance in the marketplace and informal sector, while simplifying VAT payment and remittance for the marketplace and informal sector using a purpose-built digital platform”.
The statement added that “This will also boost VAR revenue generation for the three tiers of government, which in turn means more money to fund infrastructure and social amenities.”
According to the most recent National Bureau report, Nigeria received N1.18 trillion in VAT and corporate income tax in the first three months of 2023.
The Debt Management Office recently told Nigeria that it needed to expand its revenue net in order to sustain its growing debt burden of roughly N49.85 trillion.
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