Since its inception, the Namibia Revenue Agency (NamRA) has pumped billions of dollars into national coffers by continuously exceeding its collection targets. 

NamRA collected a net amount of N$21.4 billion in three months.This amounts to 25.10% of the revenue projection for the current fiscal year, FY2024/25. The significant increase in revenue-collection is expected to give the government more room to allocate funds to meet the country’s most pressing needs. NamRA commissioner Sam Shivute revealed the outstanding collecting figure in the agency’s newsletter last Friday. 

“The revenue generated during this period comprises 63% from domestic taxes, and 37% from customs and excise. Domestic taxes recorded a gross revenue amount of N$15.7 billion, achieving a net collection of N$13.5 billion for the reviewed period,” he shared.  Similarly, customs and excise collected a net revenue of N$7.9 billion, predominantly through Southern African Customs Union (Sacu) receipts. 

In terms of refunds, the commissioner stated that N$2.3 billion was disbursed to taxpayers following audits and verifications with N$2.15 billion, accounting for 95%, relating to value-added tax refunds. Tabling the 2024/25 national budget in February this year in the National Assembly, finance minister Iipumbu Shiimi said the government estimated total revenues of N$90.4 billion for FY2024/25, an increase of 11.5% from the revised estimates of the previous year. “The strengthening domestic economic fundamentals and the resultant strong revenue performance have created an avenue for us to expand the spending envelope to accelerate service delivery, address the most pressing needs, and improve infrastructure development,” he said at the time.  Due to outstanding revenue-collection, among others, government tabled a whoping budget of N$100.1 billion for the year. 

Furthermore, with less than three months left, Shivute encouraged taxpayers with tax debts to make use of the Tax Relief Amnesty Programme before the deadline on 30 October. 

NamRA is in the final leg of the programme, whereby interest and penalties will be fully written off if taxpayers settle the outstanding capital by 30 October.  Shiimi in February also warned that this is the final extension of this programme. He said, “It is important for all concerned taxpayers to participate before the due date because we shall not lend a sympathetic ear to anyone afterwards”.  In April this year, NamRA revealed that about 235 505 taxpayers were in arrears with the revenue agency.  What was owed included a capital amount of
N$17 billion, interest worth N$13 billion, and penalties of N$49 billion. This added up to N$79 billion.

On the other hand, for the 2024/25 financial year, an amount of N$1 billion is allocated to NamRA. 

This allocation, deputy finance minister Maureen Hinda-Mbuende said, is pivotal in ensuring the effective collection of State tax and customs revenue, which plays a vital role in financing government operations and funding key public services. 

“The significant allocation to NamRA underscores the ministry’s commitment to strengthening revenue mobilisation efforts, and enhancing tax compliance mechanisms. By providing adequate resources to NamRA, we aim to bolster its capacity to enforce tax laws, combat tax evasion and avoidance, and streamline customs procedures,” she said in parliament.  -mndjavera@nepc.com.na