Business people encouraged to honour tax obligations

Ongwediva-The Commissioner of Inland Revenue, Justus Mwafongwe, has encouraged the business community to honour their tax obligations to aid government in addressing income disparities.

During a public lecture on Thursday evening, Mwafongwe said government needs constant cashflow to address the rampant inequality and bring about development in the country. Businesses have no reason not to honour their taxes if the poor are paying, he said.

In discussing the importance of tax collection, Mwafongwe reminded the business community that the national projects awarded by government are funded through the tax collection. He said tax collection remains vital to increase government revenue, enhance savings, reduce inequality, and create income and wealth, as well as control inflation.

The public lecture on the role of taxes on the Namibian economy, tax collection and amnesty was organised by the University of Namibia ALUMNI association at UNAM's Jose Eduardo Dos Santos campus in Ongwediva.

Mwafongwe also appealed to business people in the construction sector to enforce the 10 percent tax collection from non-residents employed in their respective companies. He said the failure to enforce has created an opportunity for non-residents to get away without honouring their taxes, as required.

You need to enforce that, else the responsibility falls on you, Mwafongwe said. The Inland Revenue commissioner also emphasised the importance of paying taxes collected from employees to the revenue office promptly. He said collecting tax from employees for personal use instead of paying it over to the revenue office is theft and should be discouraged.

Pay on time. If the [outstanding] money accumulates you may not be able to pay it back, warned Mwafongwe. He also advised taxpayers who are struggling to honour their taxes on time to promptly approach the Inland Revenue office to make appropriate arrangements.

Source: New Era Newspaper Namibia