Bauchi Chamber of Commerce urges FIRS to stop delaying tax refunds

The Bauchi Chamber of Commerce, Industry, Mines and Agriculture, BACCIMA, has called on the Federal Inland Revenue Service, FIRS, to stop the prolonged delay in processing Withholding Tax, WHT, refunds, saying the situation is crippling many businesses, especially small and medium enterprises, SMEs.

Speaking at a press conference in Bauchi, the President of the Chamber, Aminu Mohammed Danmaliki, said companies are compelled to pay 10 percent of their contract sums as WHT, which should be refunded once they meet their full tax obligations.

He, however, lamented that many firms hardly receive the refunds on time due to bureaucracy and corruption.

“Many companies have their capital trapped for years. The funds that should have been used to expand their operations remain tied up because of delayed refunds. It is hurting growth and discouraging investment,” he said.

Danmaliki noted that while FIRS quickly penalises companies for late tax payments, the same rule does not apply when the agency delays refunds.

“This is unfair. Just as taxpayers pay penalties for delays, FIRS should also pay interest and penalties when it fails to refund on time,” he said.

The Chamber also criticised government agencies for delaying contract payments even after projects have been certified as completed.

Danmaliki said many contractors wait for years before receiving their money, adding that some cleaning and security firms have not been paid for over two years.

According to him, such delays push many businesses into debt and make it difficult to pay workers, as banks that financed the projects demand repayment.

“This is not just a financial problem; it is a social issue that affects families and jobs,” he said.

BACCIMA urged FIRS to reform its refund process and ensure transparency by creating a time-bound system that allows refunds to be processed within 30 days.

The Chamber also proposed that delayed refunds should attract interest and penalties, just as companies are penalised for defaulting.

Danmaliki further called for the creation of a jointly managed WHT Refund Account, supervised by FIRS and the private sector, to ensure accountability.

He also appealed to the National Assembly and the Federal Ministry of Finance to provide strict oversight.

He stressed that WHT funds belong to the private sector until reconciliation, saying fairness requires the same level of accountability from government agencies that they demand from taxpayers.

“We are not asking for privilege but fairness. Businesses must not be punished while government agencies are allowed to delay endlessly,” he added.

The Chamber warned that unless the government reforms the refund and contract payment system, more companies will close down, leading to job losses and slower economic growth.