CHAMWE KAIRA
The government has tabled legislation to establish an independent Tax Court within the High Court system, replacing the defunct Special Tax Court and restructuring the country’s tax dispute resolution framework following a 2021 High Court ruling that declared key provisions of the existing system unconstitutional.
Tabling the Income Tax Amendment Bill of 2026 in the National Assembly this week, finance minister Erica Shafudah said the proposed amendments seek to create a dedicated Tax Court to hear income tax and value-added tax (VAT) appeals, while clarifying the respective roles of the minister of finance and the commissioner of the Namibia Revenue Agency (NamRA) in administering the Income Tax Act.
“The new tax court will form part of the High Court structure as provided for under the Constitution and will function as an independent judicial institution tasked with delivering objective and impartial decisions free from external influence,” Shafudah said.
Shafudah said the amendments respond to a 2021 High Court judgment that found the provisions governing the constitution of the Special Tax Court unconstitutional because the minister of finance had both the authority to establish the court and appoint its members, while also administering the Income Tax Act.
The court ruled that this arrangement compromised the constitutional right to a fair trial under Article 12 of the Namibian Constitution.
“The effect of the order made by the High Court of Namibia meant that the Special Tax Court ceased to exist as an institution under the law,” Shafudah said.
“Taxpayers were therefore left without a specialised legal forum to which they could turn to have their matters heard.”
The court will hear appeals relating to income tax, VAT and other tax disputes referred to it, while also operating under the procedural rules of the High Court.
According to the minister, the Tax Court will function as an independent judicial institution responsible for delivering impartial decisions free from external influence, with the aim of strengthening public confidence in Namibia’s tax administration.
The bill also formalises the relationship between the Tax Tribunal and the new Tax Court.
Under the proposed system, taxpayers dissatisfied with tax assessments issued by NamRA will first lodge their cases with the Tax Tribunal.
Appeals against decisions of the tribunal will then be heard by the Tax Court.
“The Bill further reaffirms the hierarchy between the Tax Tribunal and the Tax Court. The Tax Tribunal will serve as the forum of first instance, whereby taxpayers are expected to lay their cases in the event that they are not satisfied with an assessment made by the Namibia Revenue Agency. The Tax Court, on the other hand, will serve as an appellate body that hears appeals from the Tax Tribunal,” Shafudah stated.
As part of the reforms, the bill transfers numerous administrative references from the “minister” to the “commissioner” throughout the Income Tax Act, reflecting the transfer of tax administration and collection functions to NamRA following its establishment in 2017.
Under the proposed framework, the Judge President of the High Court will designate a judge to preside over the Tax Court, while the Registrar of the High Court will also serve as Registrar of the Tax Court.
The court will have discretion to appoint assessors to provide technical advice, although these assessors will not participate in judicial decision-making.
The bill further provides that hearings will remain confidential and not be conducted in public.
Both taxpayers and NamRA will retain the right to legal representation during proceedings.
The legislation also includes transitional provisions allowing matters that were pending before the abolished Special Tax Court to be transferred to and heard by the newly established Tax Court.
Shafudah urged members of the National Assembly to support the bill, saying it would strengthen the separation between executive and judicial authority while providing taxpayers with an independent and constitutionally compliant forum for resolving tax disputes.
