ONGWEDIVA – Subsequent to the Namibia Local Business Association requesting the Namibia Revenue Agency to ensure all foreign-owned businesses pay tax, NamRA commissioner Sam Shivute said every tax-eligible person or business, including locals and foreigners, is obliged to comply with tax regulations.
Naloba is of the view that foreign business owners are having their bread buttered on both sides at the expense of locals. Speaking during a consultative meeting with NamRA at Ongwediva last week, Naloba’s vice president Peter Amadhila said all foreign-owned businesses should start paying tax, issuing tax invoices and having speed points in their businesses.
Among many other demands submitted to NamRA, Naloba demanded foreign business owners employ local bookkeepers and accountants with immediate effect.
“All foreigners should register their businesses with NamRA, and those that are not should cease operation with immediate effect. Registration and taxes should be backdated,” Naloba further demanded before requesting the revenue institution to provide Naloba with a database of all foreign businesses and indicate how the tax was collected from those businesses.
“NamRA should also give us a database of all foreign businesses that obtained government tenders and how taxes were paid by those tenderers,” said Naloba.
Responding to the submission, Shivute said “tax compliance must be complied with by everyone – locals or foreigners. Everyone liable to pay tax in Namibia is obliged to pay tax”.
On the issue of Naloba requesting a database for foreign-owned businesses, Shivute indicated it will be illegal to issue the database, and they can be sued by individuals.
He also urged business owners to be careful of their bookkeepers and know what they are doing, as they might cook the books.
This is not the first time Naloba is decrying the conduct of foreign-owned businesses.
During the official unveiling of the new association earlier this year, they also complained against the idea of foreign nationals doing business in various sectors, which they believe should have been reserved for locals.
Naloba believes certain sectors should be reserved only for Namibians, while foreigners should be allowed to add value in other areas, such as manufacturing.