By: Nghiinomenwa Erastus
Khomas region owes the treasurer N$5,7 billion in unpaid taxes (capital amount), according to the Namibia Revenue Agency’s (NamRa) assessment.
According to NamRa’s update, the country has a high non-compliance in tax payments, standing at 48 per cent.
They have also noted that individuals are paying more taxes compared to corporates. An individual tax on individuals accounted for NamRa’s collection of (N$34,8 billion), followed by VAT with 36 per cent, and corporate came through with 11 per cent, according to last year’s financial year that ended on 31 March 2022.
Khomas region, although indebted in tax debts to Omaheke region, they have paid N$11,7 billion in taxes (33,7 per cent) for that period.
The rest of the 12 regions paid N$23,1 billion during this period.
Regarding refunds during this period, 68 per cent refunds were paid to VAT vendors, 27 per cent were income tax refunds to individuals and 5 per cent to corporate tax refunds.
This comes as the tax collection agency announced a week ago that from 1 June, taxpayers who register through the Integrated Tax Administration System can get relief on their outstanding tax debts.
The tax collector affirmed the move yesterday during a stakeholder engagement in Khomas region.
The NamRa team indicated that for taxpayers to benefit from the relief, they must register on the Integrated Tax Administration System (ITAS) Portal and file their tax returns electronically.
The Programme provides relief to taxpayers with outstanding tax debts by writing off 70 per cent interest if a taxpayer settles their capital amount by November 2022-the taxpayer will only pay 30 per cent of interest.
While for those who cannot settle the capital amount they owe by 30 November can settle it between 30 November 2022 and 31 May 2023 and qualify to have 60 per cent of their tax interest written off.
Moreover, joining ITAS and settling the capital amount owed will also prompt NamRa to reverse 100 per cent of all penalties levied on the taxpayer’s account.
The Namibia Chamber of Commerce and the Namibia Institute of Professional Accountants (NIPA) have appealed to finance minister Iipumbu Shiimi and NamRa commissioner Sam Shivute to extend the tax relief early this year.
During Minister of Finance Ipumbu Shiimi’s 2022/2023 National Budget address in February 2022, he made commitments to extend the relief.
Early this year, NamRa reported Namibians, individuals and businesses owed the tax collector billions in capital balances, penalties and interests.
NamRA encourages taxpayers with outstanding tax debts to participate in the Modified Electronic Filing Tax Relief Programme and settle their tax debts. The Programme ends on 31 May 2023. Taxpayers need to log in to their ITAS Portal accounts.
Email: erastus@thevillager.com.na
