Value Added Tax (VAT) is being collected and remitted by the FIRS utilizing the IMRMS platform from traders in the marketplace in collaboration with the Market Traders Association of Nigeria (MATAN), which serves as the umbrella organization for all trading associations in Nigeria.
The partnership, called the VAT Direct Initiative (VDI), is a component of the effort to increase the size of the tax base that the government collects.
MATAN, which has well over 40 million members nationwide, is the biggest participant in the Nigerian market.
As per the agreement, MATAN is required to digitally count its members, provide them with a digital identification, and monitor their turnover in order to collect and send the accumulated VAT to the FIRS.
With this project, the FIRS would collaborate with security forces to address multiple taxation in the marketplace and prevent touts, miscreants, and self-imposed tax collectors from engaging in illicit tax collection in Nigerian market areas.
Mr. Adebayo Adefeogbe, a director in the FIRS, stated that the effort will give the government coordinated access to about 70% of untax revenue in the informal sector during the official start of the traders enumeration process in Abuja.
He said that by collecting VAT from more than 40 million vendors, the government will be able to supply necessities in public markets all throughout the nation.
Market leaders in attendance were advised by Moses Ige, MATAN National Coordinator of Incentives, to raise awareness among members of different market associations in order to guarantee their enrollment in the VAT Direct Initiative (VDI).
He enumerated the advantages of the VAT Direct Initiative for registered traders, which include free legal services, low-interest and non-collaterized company loans and grants, health insurance, micropensions, general insurance coverage, and the provision of social amenities in markets.
"Every service enjoyed by those in the public sector, including the health insurance scheme, will also be extended to those in the informal sector," stated Ige. Free medical care will be available to MATAN members who have registered.
In addition, registered traders will have access to loans, a micro-pension plan, and insurance coverage in the event of a calamity. Our members' registration for the contributory pension plan is being processed in collaboration with the National Pension Commission (PENCOM).
"The government will get more funding through the VAT Direct Initiative to carry out capital projects in markets throughout the nation.
In order to guarantee that all small business owners have access to financing, we are also collaborating with Bank of Industry (BOI).