By:Justicia Shipena
Namibian taxpayers owe National Treasury a total of N$16 billion in taxes, according to the Namibia Revenue Agency (NamRA).
During a courtesy visit to State House on Thursday, NAMRA chief Sam Shivute, provided President Hage Geingob with an update on the agency’s activities.
“We [are in a situation] whereby N$16 billion is owed to the state by taxpayers,” he revealed.
This is much more than the figure from 2021, when it was disclosed that people owed National Treasury N$12 billion in taxes, some of which dated back to around 2006.
Shivute, on the other hand, stated that the overall tax debt presently stands at N$73 billion, which is divided into three categories: N$16 billion in capital, N$12 billion in interest and N$43 billion in penalties.
He stressed at the meeting with the President that people should take advantage of the tax amnesty period to clear their outstanding debts.
NamRA announced an 18-month amnesty period three months ago, waiving 100% of accrued fines and interest if taxpayers register on the Integrated Tax Administration System (ITAS) portal between April 1 and October 31, 2024.
Shivute told the President that the state-owned entity exceeded its revenue collection objective last year.
“Last year we were given a target to collect N$49 billion but by September last year we were hitting above our weight. The target was then shifted from N$49 billion to N$53 billion,” he said.
Shivute stated towards the end of the fiscal year, the agency had collected N$66 billion in revenue.
NamRA reimbursed N$8.7 billion in VAT off the N$66 billion.
“At the end of the day the net that went to the State was N$57 billion,” he added.
Shivute further stated the agency is already experiencing major successes in the collection of revenue this year.
“By the end of June this year, we collected an additional N$3 billion compared to what we collected last year during the first quarter.”
Meanwhile, in a media release on Thursday, NamRa reported progress has been made in the investigation into the fraudulent income tax refund scheme that began in March 2022.
This comes after NamRA declared in January this year that the number of persons participating in the enormous bogus tax refund scheme had climbed from 409 in July 2022 to 921, with the amount involved increasing from N$36 million to an astounding N$136 million.
Steven Yarukeekuro Ndorokaze, Head of Strategic Communications, Stakeholder Engagement, Taxpayer Education and International Relations, stated that as of 18 July 2023, the agency’s investigations had implicated a total of 1,168 taxpayers employed at 84 institutions, including private companies, government, ministries and agencies, and public institutions.
Ndorokaze said the entire refund amount under investigation has risen from N$15 million in March 2022 to N$833 million, an enormous rise from the N$136 million disclosed in January this year.
“NamRA’s relentless efforts in the recovery process have yielded NS19.9 million through intensive recovery interventions,” he said, adding that NamRA has issued 322 demand letters.
He also stated that the Namibian Police had recorded 56 criminal cases to date.
Only five individuals, however, have been apprehended and charged.
“More suspects are expected to be arrested in the coming weeks,” Ndorokaze said.
