By: Nghiinomenwa Erastus
The Namibia Revenue Agency said its quest is to expand the tax base by ensuring those under-estimating their taxable income pay their dues to the state.
The Agency revealed this during a media briefing this week when it also highlighted that it had pinpointed various sectors that will be scrutinised if what they are paying is supposed to pay.
First on their list is the retail sector, the Agency announced.
The explanation given is that during the full-pandemic period, the retail sector was one of the active sectors in terms of business compared to other industries.
The retail sector was also beneficial to the government temporary stimulus package of N$750, which was given to the informal participants to strengthen their purchasing power.
Given the level of help the retail sector received, NamRa is prompted to dig in and assess if they have paid their dues to the state through a tax audit and other measures.
The wholesale and retail trade is in the top five of the most significant Gross Domestic Product (GDP) contribution sectors.
The wholesale and retail trade sector is more significant than the agriculture, mining, and quarrying sectors in terms of GDP contribution/activities.
Since 2014, the sector’s activities have been between N$16 billion and N$19 billion, at current prices, according to 2020 GDP figures.
The national account also shows that, in the first quarter of 2020, the sector made more than N$13 billion in revenue, while for the second and third quarters, it made more than N$11 billion.
However, in the fourth quarter of 2020, the wholesale and retail sector bounced back, making more than N$13 billion in revenue.
The positive growth continued to 2021 when the second quarter of the wholesale and retail sector revenue surpassed the N$14 billion mark.
A revenue level was only observed between the last quarter of 2014 and 2016, according to national account figures and the 2021 first-quarter GDP report.
NamRa has also highlighted that it will dig in further and perform an audit on the fishing sector- the hake and masbanker dominated is the biggest non-mineral foreign-currency earner.
Another sector that will be scrutinised for tax purposes is farming, trophy hunting specifically.
The Agency has also added that non-residents board members on companies operating in the local economy will be on their watch to assess if what they earn is taxed adequately as the tax provision dictates.
The main aim is to broaden the tax base and ensure tax compliance. Email: erastus@thevillager.com.na
