The Namibia Revenue Agency (NamRA) is making steady progress in its efforts to improve tax compliance through various initiatives, including the establishment of a transfer pricing unit.
NamRA's Commissioner, Sam Shivute, stated that some multinational companies that have operated in Namibia for years without contributing to income or corporate tax are now being held accountable.
Shivute stated that after conducting thorough audits, these companies are starting to adhere to their tax obligations.
For the past two years, Shivute noted that Namibia maintained the highest tax-to-GDP ratio in Africa, according to the African Tax Administration Forum.
He stated that this aligns with the broader call for developing African countries to improve their tax-to-GDP ratios to better fund developmental agendas.
Shivute also pointed out that the agency is actively addressing the issue of illicit financial flows, which contribute to loss of government revenue and weakened economic development.
"So what we have done in Namibia, working with the African Union and also the UN, is we have started working on projects to determine, within our jurisdiction, where that illicit financial flow is taking place. And as a result of that, we have already started conducting some auditing."
Shivute further highlighted that there have been numerous cases of misclassification and undervaluation of goods imported into the country.
To address this issue and prevent the loss of much-needed customs duties, the agency has been working alongside the International Monetary Fund (IMF) to build its capacity.
He also addressed the challenges faced by small traders, also known as 'order with me', particularly the delays in customs clearance and the high customs charges they often encounter.
"Now, the regime governing the clearing agents has sometimes failed to properly regulate them. But now, working together with the Minister of Finance, the new regulations have been submitted, and they are with the Minister of Justice, and they are required to be gazetted," he said, adding, "Then we are also reforming and modernising our processes at the entry ports, including the airport. Why? We aim to offer the finest service possible to both small and large traders. We even negotiated with the Korea Customs Service and secured support from the Korean government."
He assured the public that NamRA is available to assist citizens and emphasised that all services the agency provides are free.