Swakopmund: Businesses operating in Namibia's western region, encompassing Erongo and Kunene, currently owe the government over N.dollars 9 billion in unpaid taxes, primarily resulting from penalties and interest. Western Regional Manager for Domestic Taxes at the Namibia Revenue Agency (NamRA), Rebekah Uusiku, disclosed that only a small fraction of the region's 20,000 registered business taxpayers meet compliance standards. Uusiku made these remarks at the 4th Annual Swakopmund Business Breakfast Meeting held in Swakopmund on Friday.
According to Namibia Press Agency, Uusiku stated that not all registered taxpayers are up to date, with only some having fulfilled their tax obligations. The N.dollars 9 billion debt includes capital, penalties, and interest owed to the government. Of this total amount, N.dollars 800 million accounts for the capital portion, N.dollars 3 billion for penalties, and N.dollars 600 million for interest.
To date, an amnesty initiative has waived N.dollars 4.9 billion in penalties and N.dollars 176 million in interest, benefiting only 8,307 of the 20,000 eligible taxpayers. Business entities alone are responsible for 71% of the total debt in the region. Between April and June this year, NamRA collected N.dollars 600 million from businesses in the region. From this gross revenue, N.dollars 180 million was refunded to businesses to reinvest in the economy.
Despite these collections, Uusiku expressed concern over the outstanding debt, emphasizing the government's reliance on these revenues for essential service delivery. To address the mounting tax burden and assist struggling businesses, NamRA introduced the Tax Amnesty Programme in 2023. Originally set to conclude in April 2024, the programme has been extended to October 2026 following appeals from the business community. Uusiku noted that many businesses were adversely affected by COVID-19 and continue to face economic challenges, prompting the extension.
Uusiku encouraged all eligible businesses to participate in the programme, highlighting that compliance will enable the agency to clear the N.dollars 3 billion in penalties, starting with paying the capital. NamRA urges businesses to act before the deadline to avoid further penalties and support national revenue efforts.