The Nigerian government, through the Federal Inland Revenue Service, unveiled the VAT Direct Initiative, a system that would allow the FG to collect Value Added Taxes from the informal sector and reduce multiple taxes in the informal economy.
The FIRS announced this in a statement on Monday afternoon, noting that the FIRS is collaborating with the Market Traders Association of Nigeria to collect and remit VAT from their members, particularly those in the informal sector, through the use of unified systems technology.
The FIRS is in charge of collecting Value Added Taxes and other revenues owed to the Federal Government of Nigeria. The Market Traders Association of Nigeria, created in 1995, stated in a statement that it is the largest player in Nigeria’s informal market arena, with a market membership of over 40 million.
The FIRS stated that it is collaborating with MATAN to collect and remit Value Added Taxes from its members, particularly those in the informal sector.