Business
Economy: MATAN partners FIRS on VAT collection, targets seamless coverage of informal sector
The Market Traders Association of Nigeria (MATAN) in partnership with the Federal Inland Revenue Service (FIRS) is poised to bolster the seamless collection of Value Added Tax (VAT) from the informal sector through a new scheme tagged VAT DIRECT INITIATIVE (VDI)
In a recent announcement of the VDI initiative the Federal Government through the Executive Chairman FIRS Joint Tax Board Muhammad Nami at a stakeholders’ conference with the body in Lagos State, revealed that the scheme intends to practically reduce the burden of multiple taxation rampant within the informal economy, citing their preparedness through the instrumentality of MATAN to cover the erstwhile lost grounds.
Nami declared that: “The VAT Direct Initiative is a collaboration between FIRS and MATAN, aiming to promote VAT awareness and simplify payment and remittance processes for market traders and the informal sector through a purpose-built digital platform.
“This initiative is the first of its kind in Nigeria to utilize technology for collaboration between FIRS and the marketplace. It will help address multiple taxations in the marketplace by working with security agencies to combat the activities of touts and self-imposed tax collectors.
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“MATAN members will receive an ID card containing their Tax Identification Number and personal details upon enumeration. This will enable efficient tracking of VAT accrued from their business activities and facilitate its collection and remittance to FIRS.
“The implementation of the VAT Direct Initiative is expected to boost VAT revenue generation for all tiers of government. This increased revenue can then be used to fund infrastructure development and improve social amenities across the country.” Nami said.
The National President Importers Association of Nigeria (IMAN) Mr. Kingsley Chikezie in his remarks at the parley said that: “This programme is fashioned to move us to the I.T level where you don’t need to go to anywhere interfacing human beings to pay your levy or tax.”
He commended FIRS for the advance initiative adding that their collaboration with MATAN signals good intention for a progressive Nigeria.
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“I like all of us to make sure this transaction is seamless, this government needs the support of every one of us and we are here to give them that support, we pray that with this project a lot of money will be coming into the consolidated revenue of the Federal Government.”
Also Speaking at the epoch making event, the Secretary of the Joint Tax Board Nana-Aisha Obomeghie noted that the move was timely and very apt due to a survey taken years back which indicates that the informal sector though making payments of VAT, yet has no record with the appropriate government functionaries saddled with the responsibility of collection because monies are paid to the wrong hands.
MATAN make bold that given its large network of people, digital ID and VAT trackers will be availed to ensure seamless payment of VAT.
The body which is widely acclaimed to have 40 million members peopled by traders in the various markets across the country, hinted through its General Secretary Ambassador Johnson Olakunle, who was the host of the official initiation of VDI, that the FIRS which is solely responsible for tax collection will be partnering with MATAN to ensure the tax are paid with less hassle.
Olakunle noted further haulage operators and market traders bear the brunt of multiple taxation and MATAN was conceived to tackle the anomaly years back. He added that accruable monies in form of VAT gets into wrong hands and pockets instead the rightful Federal Government coffers, he urged stakeholders of the association to put their all in this attempt to liberate themselves owing to poise of President Bola Tinubu to remedy the ugly situation in the informal sector.