Nigeria Revenue Service Chairman Addresses Taxation Challenges in Informal Economy

Zacch Adedeji, Chairman of the Nigeria Revenue Service (NRS), addressed the current challenges in taxing the informal economy, stating that the country lacks a framework to tax this sector. Adedeji emphasized the importance of formalizing operations to facilitate taxation.

He clarified that the aim is to help small businesses grow and sustain themselves. Adedeji also mentioned the implementation of new tax laws to encourage formalization and proper categorization for taxation.

He highlighted that the focus is on ensuring that income and profits are subject to tax, rather than capital investment. Adedeji stressed the need for transparency, accountability, and continuous adjustments in tax compliance.

He also discussed the removal of VAT on essential items to alleviate the burden on the poor. Adedeji reiterated the commitment to listening to stakeholders and addressing emerging concerns to enhance tax reforms.