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Nigeria targets millions of informal traders to boost tax

Nigeria targets millions of informal traders to boost tax

NIGERIA'S federal revenue agency said it had partnered with a traders association to collect value-added tax (VAT) from millions of informal traders, part of a push to widen the tax base by President Bola Tinubu's government. Africa's largest economy has embarked on its boldest reform agenda in decades, including removing a popular petrol subsidy and restrictions on foreign exchange trading, a gamble by Tinubu to try to boost sluggish growth. Nigeria has one of the lowest tax collection rates in the world at around 10.8% of GDP, according to the Federal Inland Revenue Service (FIRS). Only 47% of this year's…
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Johannesburg’s informal traders face abuse: the city’s ‘world class’ aspirations create hostility towards them

Johannesburg’s informal traders face abuse: the city’s ‘world class’ aspirations create hostility towards them

UNEMPLOYMENT and the rising cost of living force many people to make a living in the informal economy, particularly street trading. While it is difficult to measure the size of the informal economy, some studies show that more than 60% of employed people in the world work in the informal economy. It’s over 80% in Africa, and the trend is increasing. But many governments discourage informal trading, considering it the antithesis of development. In their view, informal trading causes street congestion, contributes to crime and grime and threatens public order. Author MAMOKETE MODIBA, Researcher, Gauteng City-Region Observatory This is often…
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