FIRS and anti-people tax

I was surprised yesterday to be told by my wife that men of Federal Inland Revenue Service (FIRS) are asking her to fill VAT Registration Form to start collecting and paying VAT.   I was like, really?  As a petty trader who doesn’t issue receipt, how do they want you to be collecting and paying VAT […]

I was surprised yesterday to be told by my wife that men of Federal Inland Revenue Service (FIRS) are asking her to fill VAT Registration Form to start collecting and paying VAT.  

I was like, really?  As a petty trader who doesn’t issue receipt, how do they want you to be collecting and paying VAT to them?  How much VAT will you charge a student wanting to buy pencil of Ten Naira?  How much VAT will you charge a boy buying Ten Naira worth of sweet?  What do you charge a girl buying Five Naira chewing gum?

Before any goods come into the market, VAT is already added to the price.  Manufacturers like Lever Brothers and Nestle are paying VAT to FIRS, hence VAT is already added to the price of goods before bringing them to market.  Asking petty traders to pay VAT amounts to double taxation on goods, which will lead to higher inflation?  

Causing inflation is not the way to help the government. It will only worsen the economic situation and crate hatred to the government of the day.  

The petty traders are already overburdened with Local Government multiple taxes.  Traders are made to pay development levy and also, pay taxes on loading and off-loading of goods.

When the government makes it difficult for people to source for their livelihood through legal ways, they are forcing people to try to survive through illegal means.  No wonder, crime like prostitution, armed robbery, kidnapping etc are on the rise.

The government of the day came in through grass root support.  The support will certainly vanish if the poor masses are made to surfer unnecessarily.

FIRS authority should think twice and exempt the corner shops from VAT.

Adamson Yusuf, Abuja.