Despite the Namibia Revenue Agency’s (NamRA’s) efforts to clear a longstanding tax refund backlog, more than N$60 million in refunds for over 31000 individuals are currently on hold. 

This, the revenue agency stated, is due to incomplete tax returns and banking details. 

Meanwhile, NamRA’s continuous efforts to improve service delivery and clear the refund backlogs due to individual taxpayers has resulted in the successful payout of more than N$75 million to slightly more than 50 800 taxpayers between 23 October and 1 November 2024. The refunds ranged between N$100 and N$3000 across all tax types.

According to a NamRA media statement issued yesterday, the revenue agency is preparing to process a third batch of refunds, expected to be released later this month. This batch will cover tax credits ranging from N$101 to N$100 000. The estimated tax refunds to be disbursed amount to more than N$200 million. 

“This effort aligns with Section 94 of the Income Tax Act, 1981 (Act No. 24 of 1981), and reflcts NamRA’s commitment to clearing the longstanding backlog, ensuring that taxpayers who meet their obligations are promptly refunded,” read the NamRA statement issued by spokesperson Tonateni Shidhudhu. 

He further urged all taxpayers to update their tax records and banking information to avoid missing out on their entitled refunds. 

Meanwhile, recent tax relief measures, brought about by adjusted domestic thresholds, have already resulted in many Namibians qualifying for refunds.  The new tax regime is estimated to have directly injected more than N$640 million into the pockets of Namibians. 

According to finance minister, Iipumbu Shiimi, the tax reform is aimed at providing much-needed financial relief to taxpayers, many of whom have been struggling with the rapid escalation in the cost of living in the last few years.

The much-awaited tax relief measures exempted Namibians earning less than N$100 000 from paying Pay As You Earn (PAYE) tax. The new measures effectively mean that if an employee earns N$100 000 or less, they will not pay tax on their earnings. It also means that if an employee earns more than N$100 000, only the amount earned after the initial N$100000 is taxable.

“In this regard, we will increase the threshold for income tax on individuals from the current N$50 000 to N$100 000. This action will result in an injection of N$646 million directly into the pockets of taxpayers. Effectively, all individual taxpayers will be exempted from paying tax on the first N$100 000 of their income as of 1 March 2024,” Shiimi said when tabling the national budget earlier this year.