The Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, has revealed that President Bola Tinubu is concerned about the well-being of operators in the informal sector.
Speaking at the 157th Board meeting of the Joint Tax Board (JTB) in Ibadan, Adedeji noted that workers in the informal sector account for 92.6% of the employed population in Nigeria as of the first quarter of 2023.
Adedeji emphasized that rather than taxing the informal sector, the focus should be on formalizing it using reliable data.
“President Bola Tinubu has said the focus should be on taxing the fruits and not the seeds so that we don’t kill what people have invested in businesses,” he said.
Adedeji charged participants at the meeting to brainstorm on how to bring formality to the informal sector.
The FIRS chairman announced that the JTB would soon transition to the Joint Revenue Board (JRB) with expanded scope and responsibilities.
This transition aims to harmonize and modernize tax systems nationwide.
Oyo State Governor Seyi Makinde, who hosted the meeting, appealed for support in widening the country’s tax net.
Makinde emphasized the need for a strategic and humane approach to taxation, focusing on supporting and empowering those in the informal economy.
Makinde highlighted his administration’s commitment to balancing fiscal responsibility with inclusive economic growth.
He noted that recent initiatives have improved revenue generation in the state.
The meeting highlights the importance of finding a balance between taxation and supporting the informal sector.
By formalizing the sector and using reliable data, the government can create a more inclusive and sustainable tax system.
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