Namibia: Namra Chasing Tax Debt Dating Back 15 Years

THERE is N$12 billion in taxes owed to the Namibian government by taxpayers, and some of it dates back to roughly 2006, the Namibia Revenue Agency (Namra) said.

However, N$12 billion is just the capital amount, which excludes N$8 billion in interest accrued and N$36 billion in penalties.

In a nutshell, the government is owed N$56 billion by individuals, businesses and government institutions.

The capital amount cannot be written off, however, the tax agency can write off 75% of the interest accrued, provided those in arrears file taxes. They have until 31 January 2022 to do so.

The revenue agency’s head of domestic taxes, Idi Itope, encouraged those who owe taxes to voluntarily settle their debts or face penalties, although he could not say what the penalties would be, nor when the tax man would go after those who are non-compliant.

Itope was speaking at a media engagement on Tuesday.

“The cost of compliance is less than the cost of non-compliance. If you don’t comply, you risk your pension fund and future gratuities. It is cheaper to pay what is due and comply,” Itope added.

Namibia currently has a total of 887 500 registered taxpayers, with a 43% rate of non-compliance. In terms of tax payer accounts, the bulk is from income tax with 768 369 people registered, constituting 86%. This is followed by VAT and imports with 67 267 registrations or 8%, employers with 17 631 or 2% and other taxes are at 34 301 or 4%.

Itope explained that what constitutes ‘other’ would be royalties, transfer duties, stamp duties, none residence and so forth.

Namra has been in existence for about four months, and it has so far collected N$23 billion, out of a total revenue target of N$48,8 billion for the 2021/2 financial year.

Itope added that the revenue agency is working out ways to tax the informal economy, which he says is a major contributor to the country’s gross domestic product.

Namra commissioner Sem Shivute, who was speaking at the same platform, said the agency does not allow for corruption, which is evident in its achievements over the past four months.

He said the idea is to turn the agency into a world-class company that is passionate about its work. The commissioner added that the accomplishments of the agency are as a result of the people who work there, as well as the leadership.

“We want to be the best at what we do and we commit to serve with passion. Our work must make an impact and a difference in the lives of every Namibian,” Shivute said.

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