The Federal Inland Revenue has declared that it will do everything within its control to achieve its tax collection target of N4.9 trillion for 2016. To achieve this target, the Inland Revenue has declared that it will be focusing on the informal sector mostly dominated by corner shops, small businesses and startups.
It appears the Inland Revenue is already carrying out its plans to reach out to the informal sector. Rotus, the Anchor of the popular business news show at Smooth FM, Business Express, reported today that he was charged a 5% VAT at his barber’s shop. According to him, when he brought out money to pay his bills he noticed an extra cost on his bill which the shop owner confirmed to him as value added tax.
On further inquiry the barber informed Rotus that the Federal Inland Revenue had visited him asking that he produces his schedule of VAT remittances which he obviously did not keep. Thus the barber had no choice but to start collecting VAT from his customers or risk paying penalty charges.
It is likely, this barber shop isn’t the only one charging VAT considering how aggressive tax authorities have become. Female salons, local bukka’s, Suya Spots, Taxi Cabs etc. have either joined or will soon start charging VAT for services rendered.
