Edward Mumbuu
Maihapa Ndjavera
The Namibia Revenue Agency has surpassed its revenue-collection target by about N$2 billion, a good month before the financial year comes to a close.
NamRA has thus far collected N$55 billion from businesses and individuals.
Last year, the State revenue collector was required to collect N$53 billion in what was seen as an ambitious target then. By the end of February 2023, well before the end of the government’s financial year of 31 March, they had collected N$55 billion.
This impressive figure was confirmed by NamRA spokesperson Yarukeekuro Ndorokaze at a media engagement yesterday.
He said the agency will continue to roll out tax relief measures through a tax amnesty.
Through the amnesty, NamRA seeks to collect some N$15 billion owed to the State as the capital amount, with the possibility of writing off N$55 billion owed in interest and penalties. The programme kicks off on April 1.
As such, Ndorokaze said “this is a window of opportunity for those defaulting to pay their taxes”.
Those who register for the modified tax relief programme will also see their interest and penalties written off, on condition that they settle the principal amount.
A similar move was announced last year to help businesses and individuals in tax distress when NamRA introduced a Modified Electronic Filing Tax Relief Programme, which became effective at the beginning of June 2022. At the time, the agency stated that if outstanding tax was paid between June 2022 and the end of November 2022, 70% of accrued interest would be written off, and all penalties would be waived. Alternatively, if the outstanding tax was paid between 01 December 2022 and 31 May 2023, 60% of the interest would be written off as well as all penalties.
Meanwhile, through a rigorous recruitment drive and absorbing staff from the Ministry of Finance and Public Enterprises, NamRA has been able to hire over 1 000 employees to add to its operational structure.
In addition, the revenue agency stated that it would be awarding tax-compliant individuals and corporates on 19 April. This is aimed at encouraging Namibians to pay the State that which is due to the State.
During yesterday’s engagement, NamRA took the media on a tour of its storage facilities in the capital, while also exposing journalists to the numerous processes and systems which deal with cargo and freight handling.
It was here that NamRA officials displayed seized and detained goods valued at about N$3 million at its warehouse in Windhoek’s Southern Industrial Area. The confiscated goods include expired alcohol, various forms of literature, books as well as detergents.
The State warehouse is regulated in terms of the Customs and Excise Act. Seized goods are those prohibited or smuggled into the country, while detained goods are those which failed to meet certain requirements, but could still end up in the hands of importers.
NamRA disposes seized items through public auctions, donations and destruction if they are not fit for human consumption or are prohibited in Namibia.
However, Treasury approval must be sought before any donation is made.
Furthermore, NamRA hastened to say that ‘order with me’ products either seized or detained constitute less than 1% of total imported products.
‘Order with me’ products are mainly seized or detained due to a variety of issues relating to intellectual property rights.
NamRA, however, does not determine whether or not goods are counterfeit or breach intellectual property rights. For this determination, the agency sends a sample to the owner of the property rights/copyright holder.
Tabling the 2023/24 national budget in February this year in the National Assembly, finance minister Iipumbu Shiimi said preliminary outturns in many respects point to improving fiscal fundamentals aligned to positive domestic economic growth prospects and buoyancy arising from tax administration reforms.
He added that in January 2023, Namra’s collection rate stood at approximately 88% over 10 months.
Shiimi also pointed out that strong growth has been noted in some domestic revenue streams, in particular Value-Added Tax (VAT), which recorded a 103% collection rate over the period, as well as income tax on individuals.
The notable improvement in revenue- collection is expected to provide government with more room to make the necessary allocations to address the most pressing needs facing the country.
-emumbuu@nepc.com.na
-mndjavera@nepc.com.na