Since coming into power last May, Nigerian President Bola Tinubu has embarked on reforms to stable an economy that is high on inflation, amid other various economic uncertainties.
Nigerian authorities have said market traders or Informal business owners in the country are to be targeted for Value Added Tax (VAT) payments.
According to the county’s Federal Tax Agency and Market Traders Association of Nigeria (MATAN), the aim is to widen Nigeria’s tax net. They also said not less than 40 million Nigerians fall into this category.
The plan reveals that market traders are to be issued a digital ID with a unique tax identification number – or “TIN” – which tracks their turnover and remittances to the Federal Inland Revenue Service (FIRS).
According to the FIRS, just over 10% of Nigeria’s government revenue is generated from taxes, one of the world’s lowest proportions. Most of the revenue is generated from crude oil sales.
Since assumption of office, President Bola Tinubu has embarked on transformative series of economic and fiscal reforms, which his administration hopes can steer the country out of its current economic crisis.