NamRA waives over N$11 billion in penalties… as tax agency exceeds revenue target

Maihapa Ndjavera

The Namibian Revenue Agency (NamRA), through the Electronic Tax Relief Scheme, which ended on January 31, 2022, has waived a total amount of over N$11 million in penalties. This was revealed by NamRA Commissioner Sam Shivute at the Taxpayer and Trader Appreciation Day held last week.

Shivute said the total number of taxpayers who participated in the program was 47,493, while N$1,320,528,999 was collected and paid into the state account.

“This amount represents 7% of the opening tax liability for the 2021/2022 financial year. We would like to thank all the taxpayers who participated in this program and ensured that their tax affairs were in order. It’s the right thing to do,” he applauded.

NamRA is currently a year old and according to Shivute, the agency is still in its infancy. According to him, the agency exceeded its revenue target with 3 billion Namibian dollars. Going forward, he said NamRA has developed a compliance and enforcement strategy aimed at tackling tax evasion and improving revenue collection.

As of September 30, 2021, Namibian taxpayers owed NamRA a staggering N$36 billion in fines. About 117,600 taxpayers were penalized for late submission and payment.

In response to the negative economic impact caused by Covid-19, the Ministry of Finance, through NamRA, introduced a tax incentive program known as the Electronic Filing Tax Relief Program. This incentive program was introduced to provide much needed relief to taxpayers by waiving a percentage of interest and penalties owed as back taxes to NamRA.

Shivute also promoted online filing of tax returns and general use of the Integrated Tax Administration System (ITAS): “Online filing has made it easier and easier for taxpayers to file their returns, download various documents and communicate with NamRA and finally provide an infusion of money into the state revenue fund through the settlement of tax arrears of delinquent taxpayers.

The commissioner said that both before and after the program’s closing date of January 31, 2022, there were many requests to expand the tax incentive program to provide more taxpayers with the opportunity to participate and settle. their taxes.

He noted that the ministry is considering relaunching the amended electronic tax relief program which stipulates that 70% of interest and 100% of penalties will be waived if taxpayers with tax arrears register on the ITAS portal and repay the tax. principal amount outstanding during the first six months. , as of June 1, 2022.

Shivute continued, “60% of interest and 100% of penalties will be waived if a taxpayer in tax arrears registers on the ITAS portal and repays the outstanding principal amount due during the remaining six months from the 1st December 2022 to May 30, 2023.”

2022-04-11 Maihapa Ndjavera

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Esther L. Steinbach