Politicians Are Hindering Small Business Owners From Paying Tax-FIRS

By Chuks Ekpeneru

Executive Chairman of the Federal Inland Revenue Service (FIRS), Mohammed Nami, has stated that politicians are frustrating the intention to tax the informal sector’

Politicians according to him have promised them of protection from taxes in order to get their votes during election.

Nani spoke at the ninth Country Correspondents meeting and African Tax Administration Forum (ATAF’s) Experts meeting on taxation of the informal sector in Abuja,

He however stated that taxing the informal sector promotes good governance and political accountability

It would also ensure the informal sector has the right to request for certain services as demanded by the formal sector, which is being taxed.

He said, “Taxing the informal sector may also be a way of promoting good governance and political accountability of the State because tax strengthens the social contract between the citizens and the government. Thus, informal businesses that contribute to tax revenues are likely to assert their rights to receive certain services from government thereby ensuring accountability.

 “Taxing the informal sector is viewed as politically unpopular and politicians are unwilling to risk losing the high number of votes represented in the sector. This is because politicians promise informal workers protection from taxation in exchange for their votes.”

He further stated that most of the businesses in the sector are also small and fragmented making it inefficient for the revenue administrations to enforce compliance.

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