MATAN to start collection of VAT from informal sector

 

The Market Traders Association of Nigeria (MATAN) has perfected plans to embark on the collection of value-added tax (VAT) from the informal sector for the Federal Government.

The VAT Direct Initiative (VDI) by the Federal Inland Revenue Service (FIRS) is to tackle multiple taxation in the marketplace and curb the activities of touts and self-imposed tax collectors through partnerships with security agencies.

The FIRS partnered MATAN to collect and remit VAT from its members, especially those in the informal sector, using a unified systems technology.

Speaking to newsmen in Lagos, Managing Director, Burke-Frazier Consulting Firm Limited and technical partner to MATAN, Ayo Abiola, said in recognition of its over 80 million members nationwide, the FIRS has decided that the body would be responsible for the collection of VAT in the informal sector.

Abiola noted that MATAN would deploy its digital platform, which enumerates members giving them a digital ID and tracking their turnover so that VAT accrued is collected and remitted to the FIRS.

He said MATAN members would receive identity cards upon enumeration which contain their tax identification number (TIN) and other personal details for tax purposes.

Abiola explained that each association under MATAN would provide agents who would be responsible for tax collection and educate members in their areas on the new modalities.

He added that the partnership would provide a monitoring and evaluation team that includes FIRS officers and MATAN members to ensure transparency, accountability and prompt VAT remittance.

The technical adviser said the government has promised numerous benefits and the body is also working on the issues of acceptable loan facilities for members which would not run on compound interest.

He advised members to keep their payment receipts as the government would institute a reward system while the association would also provide a team to check the authenticity of the receipts.