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By Gabriel Dike, Lagos
Preparation for the collection of VAT Direct Initiative (VDI) by the Market Traders Association of Nigeria (MATAN) on behalf of the Federal Government has reached an advanced stage.
In the last month, officials of Federal Inland Services (FIRS), MATAN and Burke-Frazier met with some stakeholders to fine-tune the collection of VAT Direct Initiative from traders nationwide.
The Managing Director of Burke-Frazier Consulting Firm Ltd, Mr Ayo Abiola, disclosed that over 80 million members are waiting for MATAN to start the collection of the VAT Direct Initiative (VDI) from the informal sector.
Abiola disclosed that MATAN would operate in the 774 local government areas in the country, adding, the enumeration of members is ongoing nationwide.”
Abiola said VDI would increase payment of tax in the informal sector and reduce double taxation of members. He said the Tinubu administration responded to MATAN cry over multiple taxations paid by members.
“In recognition of our position in the informal sector, the government mandated us to collect VDI on their behalf. The FIRS estimate MATAN members at #40million but we have over #80million members in the 774 LGAs engaged in buying and selling as well as providing goods and services.
“Across the World, it has been difficult to reach out to those doing business in the informal sector. The formal sector only contributes 20 percent to tax, that is not enough,” Abiola stated.
He assured the federal government and the FIRS that MATAN would help boost the collection of VDI from the informal sector and improve the revenue base of the country.
Ahead of the collection of VDI, Mr. Abiola said MATAN in June held three major meetings in Lagos with stakeholders and partners including the FIRS to fine-tune the take-off of the payment of VDI by the informal sector.
Abiola explained that it was difficult for the federal government to penetrate the informal sector and based on our nationwide spread, the government gave MATAN the right to collect VAT.
The MD of Burke-Frazier confirmed that investors from Thailand met with MATAN officials in Lagos as part of the fine-tuning process, noting, “we are just perfecting what we need to start the collection of VDI.”
He explained that MATAN members include traders, bureau the charge, artisans, truck drivers association and many others that are being reached out.
Abiola disclosed that even before the start of the collection of VDI, about one million jobs have been generated and that collection would be done by accredited members known to MATAN members in their states and local government areas.
“We are not imposing collectors on our members. Members are aware of the amount to pay. We collect the VDI digitally. MATAN has a software we are linking to our members. Registered members will be given smart cards for payment and they will have access to bank facilities. There will be a reward depending on the number of transactions done,” he stated.
Abiola assured the nation that the collection of VDI will take-off as soon as MATAN concludes the necessary process. While on enforcement, he said the federal government will ensure the smooth operation of VDI nationwide and enforced its implementation.
