FIRS Wants Street Vendors To Pay Tax

In a bid to expand the government’s revenue base, the Executive Chairman of the Federal Inland Revenue Service (FIRS), Mohammed Nami, has called out tax operators on the need to tax traders on the street.

What this means is that the woman selling food on the street may likely begin to declare her income and pay taxes just as business entities in the formal sector.

According to the FIRS boss, politicians have continuously frustrated the intentions of tax administrator’s to tax the informal sector, saying the politicians had promised the people of protection from taxes in order to be elected.

“Taxing the informal sector is viewed as politically unpopular and politicians are unwilling to risk losing the high number of votes represented in the sector. “

Stating the benefits of his intentions Nami said taxing the sector will help the vendors assert their rights to receive certain services from the government thereby ensuring accountability.

“These businesses also operate on a cash basis and maintain poor or no accounting records. Most of the businesses in the sector are also small and fragmented making it inefficient for the revenue administrations to enforce compliance.”