BIRS Issues Mandatory Tax Payments for Tax clearance certificate
By Prosper Okoye-
The Benue State Internal Revenue Service (BIRS) has issued mandatory Tax payments for members of the public interested in obtaining tax clearance certificates for any purpose.
This notice is contained in a circular released on the 6th of April, 2022, and signed by the agency’s Director of Tax Assessment, Victor Beke, on behalf of the Executive Chairman, Chief Mimi Adzape-Orubibi.
According to the circular, this policy became imperative as the tax agency had “observed with dismay that taxpayers only demand tax clearance certificate (TCC) when they need it for a purpose.”
Payments to be made were categorized into various occupations:
1. Professionals [medical, legal, Accountant, Engineer, etc] N400, 000
2. Pharmacists ………… N400,000
3. Directors fee……………N300,000
4. Car/motor dealers………….N200,000
5. Clergy……………………….N200,000
6. Patent medicine sales….N200,000
7. Traders…………………………N200,000
8. Artisans……………….N200,000
9. Farmers…………………..N200,000
10. Students………………..N100,000
11. Minimum Tax……………N200,000
The circular further includes other payments to be made before a tax clearance certificate can be issued:
1. 21% interest charge if payment of tax is not as at when due
2. 10% penalty charge if payment of tax is not as at when due
3. Processing fee……………………..N2,500
4.Development levy (N1000 yearly)……….N3,000
5. Stamps……………………………N100
Reacting to the new tax policy, the Makurdi humanitarian and social media activist, Ukan Kurugh says, the prices are very high compared to other states around.
“No wonder many Benue people are rushing to Nassarawa state to obtain their tax clearance certificate. If these prices are not reviewed many serious-minded people may not be willing to do business in the state.”
He alleges that the policy is politically motivated because political aspirants must get tax clearance to be eligible to contest the upcoming elections.
Mr. Kurugh advised that tax authorities should reconsider their stance especially as it concerns students, because studies had shown that tax evasion is caused by difficulties of compliance, more than it is a natural desire to avoid payment of taxes.
Also speaking, Benue State chapter of the international Federation of Women Lawyers (FIDA) Public Relations Officer ii, Cleopatra Atsor Esq, said the policy is misguided.
” It is not taxation in its true sense, because it is basically saying that where you need a tax clearance certificate, you can go to BIRS and pay the stipulated sum to get the clearance certificate.
“The BIRS is telling tax payers that they don’t care. And they should not pay their taxes on a regular basis, when you need a clearance just come and pay us the money and get a tax clearance.
She also condemned the categorization of fees that are stipulated to be paid.
” It is curious how they determine the income of a particular individual among these categories.
“For example lawyers earn differently based on their year of call, and whether they are employees or they own a law firm, yet all lawyers are lumped together to pay 400 thousand naira.
“The policy is also unfriendly to female lawyers, who ordinarily earn less than their male counterparts. And have less employment opportunities than their male counterpart.
“By lumping everyone together, it automatically knocks off most female lawyers, and young male lawyers who had just begun practice, and even others who are in practice but are not doing well financially, from obtaining a tax clearance certificate if the need arises.
The Public Relations Officer advised that, “the proper thing should have been that the agency should not issue tax clearance to someone who hasn’t paid tax.
