The Federal Inland Revenue Service (FIRS) has rolled out the implementation of the Integrated Market Revenue Management System (IMRMS), a purpose-built digital platform, to capture the informal sector, especially market traders in the federal government’s tax net.
The FIRS is to collaboration with Market Traders Association of Nigeria (MATAN), the umbrella body for all trading associations in Nigeria, to collect and remit Value Added Tax (VAT) from traders in marketplace, using the IMRMS platform.
The collaboration code named as the VAT Direct Initiative (VDI), is part of a deliberate move to expand the government’s tax base.
MATAN which is the largest player in Nigeria’s market space has a membership of over 40 million traders across the country.
Under the arrangement, MATAN is expected to digitally enumerate its members, give them a digital identity and track their turnover so that VAT accrued is collected and remitted to the FIRS.
Through this initiative, the FIRS will help tackle multiple taxation in the marketplace through partnership with security agencies to curb the activities of touts, miscreants and self-imposed tax collectors involved in illegal tax collection in Nigeria’s market spaces.
Speaking at an the official launch of traders enumeration exercise in Abuja, Mr Adebayo Adefeogbe, a director in the FIRS, said the initiative would grant the government coordinated access to almost 70 per cent untaxed revenue in the informal sector.
He said collecting VAT from over 40 million traders would enable the government to provide basic amenities in marketplaces across the country.
Moses Ige, MATAN National Coordinator of Incentives, urged market leaders who were present at the event, to sensitise members of various market associations to ensure that they are captured for the VAT Direct Initiative (VDI).
He listed the benefits of VAT Direct Initiative for registered traders to include health insurance, micro pension, general insurance cover, low-interest and non-collaterised business loans and grants, provision of provision of social amenities in marketplaces and free legal services.
Ige said, “All the services, including health insurance scheme, enjoyed by those in the public sector will also be extended to those in the informal sector. Registered MATAN members will have access to free medical care.
“Registered traders will also enjoy insurance cover in case of any loss as a result of disasters, have access to loans, and enjoy micro-pension scheme. We are working with the National Pension Commission (PENCOM) to get our members registered for the contributory pension scheme.
“With the VAT Direct Initiative, the government will get more revenue to execute capital projects in markets across the country.
“We are also partnering with Bank of Industry (BOI) to ensure that every small business owners have access to loans.”
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Very good