Hertta-Maria Amutenja
The Namibia Revenue Agency (NamRa) Commissioner Sam Shivute said for Africa to have economic sovereignty the continent needs to strengthen its domestic resource mobilization.
Shivute said this earlier this week, while addressing the Southern African Customs Union (SACU) members’ signing of mutual recognition arrangement in South Africa.
“If our tax administration, not only in our region but in Africa is weak we will have a failed state and we will not be in a position to enjoy peace and stability. The reason why we need to improve voluntary compliance is for us to grow our economy, to improve our revenue collection. For us to have economic sovereignty, we need to strengthen domestic resource mobilization and it must be a concern for us all Africans if we want to be independent,” he said
Accredited traders in Botswana, Eswatini, Lesotho, Namibia, and South Africa will benefit from lower trade costs and streamlined import and export procedures as a result of the mutual recognition agreement.
In addition, through the signing of the agreement, the Commissioners General of revenue authorities in the five states of SACU have agreed to recognise each other’s Authorised Economic Operators (AEO).
AEO Programme is an internationally endorsed risk management approach that seeks to collaborate with trade supply-chain entities.
According to Kungo Mabogo SACU, Secretariat, in order for these entities to maintain high standard internal operational procedures and have an appropriate history of compliance, they must also have an appropriate record of compliance.
Shivute added that encouragement of voluntary compliance is essential to preventing the entry of illegal goods.
“Revenue collecting, facilitation of legitimate trade and protection of society are three key mandates of Namra and ensuring that through our borders illicit goods like weapons and fake medication that can kill our society do not get through, hence encouragement of voluntary compliance is very key and tax administration requires the support of everyone for us to be successful,” said Shivute.
Moreover, Mbango said the Commissioners have committed to ensuring that the AEO program contributes toward the vision of further deepening Africa’s connectivity to global trade networks to leverage opportunities for economic development presented by such integration.
The Executive Secretary of SACU, Thabo Khasipe, said: “The AEO programme has now been mutually recognised by SACU so that these benefits can extend to compliant and accredited businesses, to operate seamlessly across borders between SACU member states.”
In addition, Khasipe urged businesses to form mutually beneficial partnerships through the AEO programme so that the region can extend economic benefits to all its citizens.
“This is a VIP system for trade in the region that can assist in developing the region,” he said.
