₦airaland Forum

To widen the tax net, FG has introduced a 1% presumptive tax on total revenue made by businesses in the informal sector; traders, welders, mechanics, tailors, shop owners etc must now pay 1% of their annual sales as tax.

https://x.com/i/status/2030939200707539093

It can't work because there are traders that make less than 0.5 percent

However small businesses that have address can be forced to file VAT

treesun:
To widen the tax net, FG has introduced a 1% presumptive tax on total revenue made by businesses in the informal sector; traders, welders, mechanics, tailors, shop owners etc must now pay 1% of their annual sales as tax.

https://x.com/i/status/2030939200707539093

Is it through lies, misinformation and propaganda that election losers want to win the election. You don't know jack other than copying and pasting.

It's to eliminate multiple taxes at the state and local government levels and not all traders are going to pay.

The news already made frontpage - FG Bans Collection Of Cash Taxes, Revenue Road Blocks On Highways
https://www.nairaland.com/8629295/tax-laws-fg-bans-collection

lawani:
It can't work because there are traders that make less than 0.5 percent

However small businesses that have address can be forced to file VAT

Traders with 12 million annual turnover or less are exempted.

Putindbutt:
Is it through lies, misinformation and propaganda that election losers want to win the election. You don't know jack other than copying and pasting.

It's to eliminate multiple taxes at the state and local government levels and not all traders are going to pay.




Traders with 12 million annual turnover or less are exempted.

It is the ones with the highest turnovers that have the lowest margins

lawani:
It is the ones with the highest turnovers that have the lowest margins

It's a progressive tax system.

Putindbutt:
It's a progressive tax system.

Take a MTN dealership that sells 300 million naira a day with less than 150k as gain and is expected to pay 3 million naira in taxes accumulating everyday, how will that work? Most wholesale businesses are like that. If you force it on them then the market will be disrupted. It can't work.

There are some big retailers like supermarkets and with those ones it can work but how do you separate them?

It can work with supermarkets and other big retailers but not with wholesalers. With big retailers there need be no turnover cap. Just file your taxes.

However VAT has not been fully tapped as there are probably more than ten million small businesses in the country that can pay over 500k per annum in VAT.