FIRS, SMEDAN to increase voluntary tax compliance by MSMEs: The Federal Inland Revenue Service, the Joint tax Board and the Small and Medium Enterprises Development Agency of Nigeria have entered into a partnership to improve the level of voluntary tax compliance by operators in the Micro, Small and Medium Enterprises sector.
The Federal Inland Revenue Service, the Joint tax Board and the Small and Medium Enterprises Development Agency of Nigeria have entered into a partnership to improve the level of voluntary tax compliance by operators in the Micro, Small and Medium Enterprises sector.
The collaboration was sealed during a meeting that attracted key players in the MSME sub-sector.
The move is also part of measures aimed at improving the country’s tax to Gross Domestic Product ratio, which at six per cent is currently one of the lowest in the world.
A statement on Sunday quoted the Executive Chairman, FIRS and Chairman, JTB, Mr. Babatunde Fowler, to have said the need to increase the level of tax compliance among the MSMEs became imperative as they were the engine of economic growth.
He explained that the Federal Government was supporting the MSME sector to grow, adding that this was vital in reducing unemployment and stimulating the economy.
Represented by the Director, Federal Engagement and Enlightenment Tax Teams, FIRS, Mr. Kunle Oseni, Fowler said, “The MSMEs are recognised as the engine of economic growth and development in the developing economies, with the capacity to effect wealth and income distribution as well as creating jobs even in stagnant economies.
“The essence of this programme is to ensure that the process of tax payment is made less onerous.”
Fowler said that the FIRS had taken various steps to support the MSMEs such as supporting the revision of the National Tax Policy to reflect the realities of the economy.
He also stated that the FIRS had made tax payment easier as taxpayers could now pay their taxes online or at the FIRS offices closer to them.
Also, the Chief Executive Officer, SMEDAN, Umaru Radda, said the agency was working to ensure that the MSMEs would continue to be an effective tool for job creation, poverty reduction and economic growth.