FIRS, Partners Introduce VDI to Curb Multiple Taxation

Uchechukwu Nnaike and Chris Asika

The Federal Inland Revenue Service (FIRS) and the Market Traders Association of Nigeria (MATAN), stakeholders and technical partners, have introduced a new system of remitting tax straight to the federal government, known as the VAT Direct Initiative (VDI)

The VDI is meant to operate in the informal sector to collect VAT from members using a unified systems technology.

Through the technology, FIRS will help tackle multi taxation in the market place through partnership with security agencies to curb activities of touts, miscreants and self-imposed tax collectors involved in illegal tax collection and remittance of VAT with a team comprising FIRS officers, MATAN members transparency, accountability and prompt VAT remittance.

Speaking at a stakeholders’ meeting in Lagos, the Managing Director of Burke – Frazier Consulting Firm Limited, Mr. Ayo Abiola, a technical partner to the initiative explained that “across the world, it has been difficult to penetrate the informal sector to bring their members into the tax method, and according to the World Bank over eighty per cent of everyday doing business and earning income are in the informal sector. This means that less than 20 per cent is realised under VAT and personal income tax.”

He noted that members of the informal sector have been paying taxes, but are not sure who they are paying to. That he said was why the members have not been getting the necessary recognition and support from the federal government. 

“But now that they know we exist they came to us and we agreed that we are going to transfer what we have been paying to whom we didn’t know then. That’s the reason for this summit, “he said.  

The General Manager, Thai Business Solutions Limited, Soji Amusan, one of the technical partners, said the company’s focus and desire are to support the Nigerian government in building a strong and viable local content that will create a sustainable economy. “Our strategy to achieve this is to bring foreign investors, particularly at this time, Thai business owners and Thai investors to Nigeria. We strongly believe that this will in no small measure complement the federal government’s efforts in diverse business sectors. This is an idea as designed by Gani Adams, Aare Onakakanfo of Yorubaland, Chairman/CEO Thai Business Solutions Nigeria Limited.”