FIRS plans incentives to draw informal sector into tax net
The Federal Inland Revenue Service (FIRS) has revealed plans to further enhance the Nigeria’s tax system by exploring various incentives aimed at drawing players in the informal sector into the tax net.
Executive Chairman of FIRS, Zacch Adedeji, stated this in Lagos, yesterday, at the Private Sector Stakeholders’ Engagement jointly organized by the Lagos Chamber of Commerce and Industry (LCCI) and FIRS, with the theme, ‘’Emerging Tax Matters”.
Adedeji who was represented by the Acting Director, Medium Taxpayers Department (South), FIRS, Mrs. Oti Olaniyi, noted that the informal sector, which constitutes a large part of our economy, poses unique challenges, adding that FIRS will soon introduce the FIRS e-Invoice to further ease tax payment.
His words: “As we explore various tax incentives to stimulate local industries, we must emphasize the need for transparency and effectiveness in the implementation of these incentives. Evaluating their impact and ensuring they align with national development goals is critical for maximizing their benefits.
“The informal sector, which constitutes a large part of our economy, poses unique challenges. Many small and micro businesses operate outside the formal tax system. To engage this sector effectively, the government is exploring simplified tax regimes and registration incentives.
“The recent restructuring of the FIRS into three operational groups – Small/Emerging Taxpayers, Medium Taxpayers, and Large Taxpayers – allows for a more focused approach in managing and supporting different segments of taxpayers.”
The FIRS boss further stated: “As we move forward, we must continue to innovate and enhance our tax system. Soon, we will introduce the FIRS e-Invoice, a digital solution for managing invoices in line with the Tax Administration and Enforcement Act 2007.
“This initiative, as part of our Digital Transformation Strategy, will facilitate real-time transaction validation and storage, benefiting Business-to-Business, Business-to-Consumer, and Business-to-Government transactions.
“The emerging tax matters in Nigeria present both challenges and opportunities. By embracing reform, leveraging technology, and ensuring transparency, we can develop a tax system that supports sustainable growth and equitable development. Our collective efforts will pave the way for a more prosperous and resilient Nigeria.”
Earlier in his remark, LCCI President, Gabriel Idahosa, emphasized the growing need for collaboration between the private sector and government to ensure that tax policies support business innovation and competitiveness.
