Martin Endjala
The northern, southern, northeastern, and north-central regions contributed the least to Namibia’s tax revenue, collectively adding over N$387 million out of the total N$4.2 billion in regional revenue performance.
The central region contributed the most, with N$1.5 billion, followed by the western region with N$487.3 million.
Namibia Revenue Agency (NamRA) Commissioner, Sam Shivute attributed the disparity to tax evasion by individuals and businesses.
He discussed this issue during NamRA’s performance report for the period from April 1 to September 30.
“To address these issues, NamRA implemented the Tax Amnesty Program on April 1, 2023, offering relief to taxpayers struggling to settle outstanding liabilities,” Shivute said.
He cautioned tax evaders that they will eventually face consequences and urged them to comply to avoid fines and other penalties.
The tax amnesty ends this month, and Shivute clarified that those seeking an extension should approach the Ministry of Finance and Public Enterprises, as NamRA is only the implementer.
This isn’t the first time the tax office has highlighted poor tax collection from the northern regions. In 2016, former finance minister Calle Schlettwein emphasised the need to close loopholes allowing northern businesses to evade taxes.
Between April 1 and September 30, NamRA collected N$45.1 billion, N$7.1 billion more than the N$38 billion collected in the same period last year.
This equates to 52.87% of the N$85.3 billion target for the current financial year, highlighting efforts to enhance tax compliance.
“It is important to note that 65% of the revenue came from domestic taxes, while 35% came from customs and excise,” Shivute added. NamRA also refunded N$5.1 billion to taxpayers after audits, with 95% of refunds related to Value-Added Tax (VAT).
Since the amnesty’s launch in April 2023, it has generated N$4.3 billion in revenue, with contributions from businesses (N$4.01 billion), individuals (N$164 million), trusts (N$51 million), and government institutions (N$31 million).
Shivute noted that a key goal of the amnesty is to encourage taxpayers to register for e-filing on the Integrated Tax Administration System (ITAS). So far, 528,086 taxpayers have registered.
Under the amnesty, NamRA has written off N$1.2 billion in interest and waived N$25.9 billion in penalties for settled accounts.
With 14 days left before the deadline, Shivute urged taxpayers to take advantage of the program.
NamRA also announced an upcoming tax refund, identifying 50,804 taxpayers as beneficiaries, with a total of N$75.1 million in refunds.
The highest refund is over N$20 000, while the lowest is N$100. Of the total, N$74.9 million is related to Income Tax, and N$259.7 million pertains to VAT.
However, N$61.8 million in refunds remains un-disbursed due to unresolved taxpayer issues, such as outstanding returns and missing banking details.
“NamRA values taxpayers’ cooperation and is committed to minimising future refund delays. We urge taxpayers to resolve outstanding issues to prevent future refund rejections,” Shivute said.
NamRA has recovered N$104.6 million in fraudulent tax payments to date, and it has opened criminal cases against 57 individuals, including two NamRA staff members. NamRA continues to work with the police and commercial banks to recover funds and ensure justice.
In March 2022, NamRA launched an investigation into fraudulent tax refunds totalling N$15 million, which later grew to N$833 million.
