By Ochiaka Ugwu
Federal Inland Revenue Service (FIRS) and Market Traders Association of Nigeria (MATAN) had rolled out VAT Direct Initiative (VDI) with the aim of eliminating multiple taxation for traders at the informal sector of the economy.
At the FIRS, MATAN VDI National Project Steering Committee Meeting in Abuja Thursday, it was stated that VDI was a bilateral program designed to foster collaboration between the FIRS, JTB and the informal sector in the collection and remittance of the Value Added Tax (VAT) and Personal Income Tax (PIT) leveraging the MATAN’s vertically integrated informal sector administrative structure.
Speaking on the VDI Concept Brief, Director of VAT, Federal Inland Revenue Service, Dr. Lovett represented by Mr. Adebayo Adefeegbe stated that Vat Direct Initiative (VDI) was targeted at avoiding multiple taxation and deals with the informal sector which constitutes bulk of the working population.
Lovett said it was focused on unorganized traders with the aim of making them conform to single taxation in line with President Bola Tinubu’s agenda of eliminating multiple taxation.
While asking traders not to be afraid of VDI, he said that it would give traders the ample opportunity of accessing loans easily and the collateral taken care of by the system put in place by MATAN.
She assured that no trader would leave in fear of losing his wares as VDI had come to stay.
Amb. Olakunle Johnson, Chairman of Project Steering Committee said the initiative was about actualizing the dream of mainstreaming aged-long advocacy for government attention and intervention in the affairs of the informal sector of the Nigeria economy.
He noted that MATAN was buoyed by the need to stamp out multiple taxation and extortion that was endemic in their space over the years, making them to launch Integrated Market Revenue Management System (IMRMS), designed essentially to harmonize members’ revenue -to government remittance system, such as the Personal Income Tax (PIT), Value Added Tax(VAT) and harness all inherent opportunities of the market place.
National President of Association of Local Government of Nigeria (ALGON), Bar. Kolade Alabi David represented by ALGON Director of Finance, Salawu Nuhu Ozigi described the initiative as a bottom – top approach saying that ALGON being in contact with different commodity association was convinced that MATAN would achieve its aim.
