By:Nghiinomenwa-vali Erastus
The country’s tax collector has revealed that 34,090 individuals and entrepreneurs from the four northern regions owe the institution around N$6,7 million in taxes, interest, and penalties.
The four regions are Oshana, Ohangwena, Oshikoto, and Omusati.
Out of what they owe the treasurer, 63 percent are penalties, and the rest is tax capital amount and interest charged.
In the latest presentation at Eenhana last Friday by the revenue agency, NamRa, indications were that the northern business communities and individuals owe the treasurer around N$996 000.
This accounts for 15 percent of their total debts to NamRa.
Despite owing the collector less than a million by the end of September 2022, these taxpayers were penalised for returning their tax returns late.
NamRa instituted around N$4,3 million worth of penalties on 34,090 northern taxpayers (individuals and companies)- charged N$100 per day a return is outstanding.
As a result, they have been accumulating penalties and most of these were accumulated via VAT.
Further, the presentation revealed that for not paying their taxes on time, NamRa has been charging them interest (20 percent per annum) and it has been indicated that interest charged capital tax amount not paid stood around N$1,5 million.
In total, the four regions have 109,083 taxpayers, accounting for 36 percent of the taxpayers registered on the national tax portal.
Last year (2021/22), these four regions only contributed to the government coffers through NamRa, N$1,5 billion in tax payments, the presentation, however, did not highlight if this is inclusive of the large taxpayers (those with annual revenue of N$75 million and above).
However, NamRa was targeting at least collecting N$1,6 billion, which did not materialise by the end of March 2022.
The government also owes the taxpayers’ VAT refunds and the four regions’ taxpayers were refunded to the tune of N$40 million last year.
As for this financial year (year to date), the data retrieved shows that NamRa has collected N$722,5 million from the four regions.
With just four months to go before the financial year ends, NamRa’s target is to collect N$1,6 billion from the four regions’ taxpayers.
For those with tax debts (capital amount, interest, and penalties), the agency has urged taxpayers participate in their Tax Relief Programme, which has been extended to next year.
This will be done by registering with an online portal, ITAS, and updating their tax account by filing their returns.
The condition to have their penalties waived or forgiven is for them to settle the full capital amount they owe by 30 November 2022, while 70 percent of the interest charged will be written off.
Furthermore, for those who do not manage to settle their capital amount by 30 November 2022 but manage to do it before 31 May 2023, penalties will still be written but only 60 percent of the interest charged will be written off. Email: erastus@thevillager.com.na
Northern taxpayers Drown in Penalties and Interest Charges
