The government of President Bola Ahmed Tinubu has announced the Value Added Tax Direct Initiative that will be deployed in the coming months to enable the government FG to collect taxes from the informal sector.
The Federal Inland Revenue Service, FIRS, made this in a statement through its Twitter handle which was sighted by Africa Today News, New York on Tuesday.
FIRS is expected to partner with the Market Traders Association of Nigeria, MATAN, to collect & remit VAT from their members, especially those in the informal sector.
‘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 National Bureau’s latest report, Nigeria collected N1.18 trillion as VAT and company income tax in the first quarter of 2023.
The Debt Management Office recently advised that Nigeria needed to increase its tax net to sustain its increasing debt burden hovering around N49.85 trillion.
In another report, President Tinubu has called on the newly appointed service chiefs to work as a team, noting that there is work to be done.
Tinubu made the remark on Monday when he met the new National Security Adviser (NSA) Nuhu Ribadu and the new service chiefs for the first time, since their appointment on June 19, 2023.
The NSA told State House Correspondents afterward that the President assured the service chiefs of his unwavering support during the meeting.
Ribadu, who said the service chiefs, on their part, pledged their loyalty to the President and Nigerians, also underlined their commitment to work tirelessly to secure the country.
Ribadu said, ‘We are here to thank Mr President for the opportunity he gave us to serve our country and to serve his own government. We also pledged our loyalty to him, to Nigeria and Nigerians.
‘We believe that the choice he made is the right one, the correct one, and we know what he wants for this country. We are going to work tirelessly to ensure that we accomplish that objective of securing our country, establishing peace, stability and let’s get our lives back.’
The NSA, who is a former Chairman of the Economic and Financial Crimes Commission (EFCC), said although the task ahead is a big one, it would be done.