Since its establishment, the Namibia Revenue Agency (NamRA) has been pumping billions of dollars into state coffers as it consistently surpasses its collection targets. This financial year, 2023/24, is no exception because as of 30 September, NamRA has already collected over N$37 billion.
This equates to just over 55% of the total revenue target of N$68 billion for the current financial year. The notable improvement in revenue-collection is expected to provide government with more room to make
the necessary allocations to address the country’s most pressing needs.
This impressive collection figure was shared yesterday by NamRA spokesperson, Yarukeekuro Ndorokaze.
“NamRA collected an amount of N$42.3 billion in gross revenues, with a net amount of N$7.4 billion. Refunds paid out for the period April to September 2023 amount to N$4.8 billion,” he stated.
He further noted that mid-year
revenue-collection is over N$9 billion better than the N$28.3 billion generated at the same time last year, which in turn was an improvement from N$26 billion at the end of September 2021.
Ndorokaze said major contributors to the strong half-year revenue-generation were receipts from the Southern African Customs Union (SACU), individual income tax (PAYE), and value-added tax (VAT).
Furthermore, the tax agency already surpassed its collection target for the 2022/23 financial year by N$4 billion. Last year, the State revenue collector was required to bring in N$53 billion in what was seen as an ambitious target then, but also exceeded this, and collected a whopping N$57 billion.
On the other hand, during the first half of the year, the tax authority refunded N$4.8 billion.
“Total tax debt continues to rise from N$56 billion in September 2021 to N$75 billion last month. The ongoing tax amnesty is aimed at reducing the amount owed by taxpayers, of which close to N$60 billion is interest and penalties, which can be fully waived if the N$16.6 billion outstanding capital is paid by 31 October 2024,” said Ndorokaze.
A few months ago, the revenue agency paid a courtesy call on President Hage Geingob, which was aimed at providing a strategic overview of the parastatal, the revenue performance, and concerns faced.
At the time, Geingob was thrilled with the collection pace, and praised the NamRA team. NamRA commissioner Sam Shivute warned people to comply and pay to avoid being hunted down by the agency.
“We want to encourage people to pay their share, with no push. We have noticed that a couple of companies in this country have been getting tenders, but they have been declaring zero returns. So, we are opening tax evasion criminal cases,” the commissioner warned. He further provided the assurance that the agency is working closely with all other law-enforcement entities to ensure that accounts are frozen, or to take money directly from personal accounts.
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 pointed out that strong growth has been noted in some domestic revenue streams, in particular VAT, which recorded a 103% collection rate over the period. Solid growth was also recorded from income tax on individuals.-mndjavera@nepc.com.na