By Khalid Idris Doya
Bauchi, Bauchi State, Nigeria
October 7, 2025(Series News Online)
The Bauchi State Chamber of Commerce, Industry, Mines and Agriculture (BACCIMA) has called for a balanced tax regime and fair payment system in Nigeria, stressing that sustainable economic growth cannot be achieved under a one-sided system where only businesses are compelled to comply promptly while government institutions delay their obligations without consequences.
According to BACCIMA, accountability goes beyond financial compliance and embodies fairness, justice, and the creation of a business environment built on trust and mutual respect. The chamber's Chairman, Hon. Aminu Mohammed Danmaliki, made this known at a press briefing in Bauchi on Tuesday.
"If businesses are required to meet strict tax deadlines under threat of penalty, then government agencies like the FIRS must also be obligated to fulfill their commitments promptly, with consequences for failure," Danmaliki stated. He emphasized that fairness is the foundation of a credible tax system, noting that Withholding Tax (WHT) refunds belong to the private sector until full reconciliation is made.
The Federal Inland Revenue Service (FIRS) currently enforces a 10% WHT deduction on contract sums to ensure compliance. However, when a company fully meets its tax obligations, the deducted funds are supposed to be refunded, a provision that is rarely respected. Danmaliki proposed that WHT funds be held in jointly managed accounts, co-supervised by the FIRS and the Organized Private Sector under the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA).
"Small and Medium Enterprises (SMEs), which make up the majority of service providers, are the worst affected by delayed payments and refunds," Danmaliki said. "Prompt settlement is critical to protect jobs, stabilize businesses, and promote economic growth."
To address this issue, Danmaliki called for the establishment of a Joint WHT Refund Account in selected banks, co-managed by FIRS and NACCIMA, to ensure refunds are processed within 30 days. Any delay, he insisted, should automatically attract interest. He also urged the government to make it mandatory for government agencies to pay certified executed contracts within a fixed timeline, say 30 days, with penalties for delays.
"The prevailing system where government agencies impose penalties for delayed tax remittance but face no repercussions for withholding payments or refunds is fundamentally unfair and economically destructive," the chamber asserted. "If taxpayers face penalties for delay, government must also face penalties for failing to refund or pay contractors on time."
Tags
Taxation