Businesses and individuals in the Khomas Region owe the Namibia Revenue Agency (NamRA) N.dollars 5.6 billion in taxes, Idi Itope, who heads the domestic taxes division announced on Tuesday.

While conceding that most Namibians were still recovering from the effects of COVID-19 which brought the economy to its knees, Itope said “we cannot blame everything on COVID-19.”

“Some of what is owed to the revenue agency dates back to five years ago. Even if we take away N.dollars 5 billion, the N.dollars 600 million is still a lot,” he said.

The revelation was made during NamRA’s stakeholder engagement held in the capital, where it was also announced that N.dollars 11.7 billion in tax revenue was collected from the Khomas Region, while the 13 other regions contributed N.dollars 23 billion to the State purse during the 2020/2021 financial year.

Of this, 49 per cent came from individual taxes and 36 per cent from value-added tax (VAT), while corporate tax was a measly 11 per cent for the whole country.

This trend is worrisome, according to NamRA’s commissioner, Sam Shivute.

It shows there is under-declaration, non-declaration and misclassification of profits by companies in Namibia.

“When individuals, teachers, police officers and government employees are contributing more than companies, we have a problem,” he said.

In recent times, NamRA courted controversy over the destruction of counterfeit goods worth N.dollars 5 million.

On the day, the agency was firm in its resolve that it will not be bullied into allowing counterfeit, illicit goods and drugs to flow into Namibia as per its mandate.

“Namibia is not a dumping site,” Shivute said.

At the same event, NamRA announced that the moratorium placed on clearing agents will be lifted from 01 July 2022 while new rules to regulate them are being finalised.

The regulations will be ready in January 2023, the agency said.

However, existing and new clearing agents will have to undergo a litmus test to measure their competency, Shivute noted.

“It cannot just be for everyone if we want to be a world-class agency,” he said.

Last year, over 200 agents had applied, of which 214 candidates sat for the clearing agents’ competency test, and only 29 candidates successfully completed the assessment.

On her part, Khomas Governor Laura McLeod-Katjirua lauded NamRA’s concerted efforts to engage the public so as to avoid room for misinformation.

“Let’s embrace the culture of dialogue,” said McLeod-Katjirua.

She said through tax collection, NamRA plays a pivotal role in the realisation of government development endeavours.

“This is the money used to construct roads, build schools and hospitals to improve the lives of our people,” the governor said.

She also welcomed NamRA’s tax relief programme which runs from June 2022 to 31 May 2023.

“This is commendable as most businesses are still grappling with the effects of COVID-19 and are not in good standing and therefore unable to participate in public tendering,” she said.

She then proposed that NamRA spread its wings in the capital by opening branches in Katutura or Khomasdal to enable those finding themselves far from the City centre to “access your services”.

Source: The Namibian Press Agency