Bringing Informal Sector To Tax Net Will Address Budget Deficit — FIRS Chairman

The Chairman of the Federal Inland Revenue Service, Mr Muhammad Nami, has said bringing the informal sector to the tax net would address the country’s budget deficit and increase revenue.

Nami said this on Tuesday at the 9th African Tax Administration Forum’s Country Correspondents Conference and Experts meeting on taxation of the informal sector in Abuja.

He explained that the figures of those who constitute the informal sector were high and could contribute significantly to the country’s economy and that of the continent by paying their taxes.

Nami, who is also the chairman of ATAF, said it was estimated that the informal sector in Africa constituted between 21 and 70 per cent of the Gross Domestic Product of most African countries.

The chairman, however, said that in spite of the large size of the informal sector, its tax records weren’t impressing, adding that most of the businesses operating in the sector were concealing their activities from tax authorities.

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He said, “Taxing the informal sector is also critical because it will ensure that there is a perception of fairness in the tax system.

“Those who operate in the formal sector view it as unfair that they are paying taxes while those in the informal sector are not. Those in the informal sector use infrastructure built with the formal sector taxpayers’ money which is injustice.’’

(NAN)

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