NAMIBIAN businesses operating in an already depressed and contracting economic environment will be given a relief and will not pay the Vocational Education and Training (VET) levy for a period of 2 months.
The reprieve will amount to a reduction of approximately N$65 million in projected income from the collection of levies for the 2020/21 financial year.
Chief Executive Officer of the Namibia Training Authority (NTA), Jerry Beukes, stated that the payment break is for July and August 2020.
He added that this reduction will not impact the ongoing implementation of strategic transformation and expansion interventions in the VET sector adversely, nor will it affect the sustainability of the VET levy programme.
Beukes added that as response to the adverse economic sector, the board of the NTA as an enterprise of government under the auspices of the Ministry of Higher Education, Technology and Innovation, decided to reduce some of the pressure that continues to accumulate on Levy-paying employers and their already constrained cash flows.
He added that employers must, however, continue to submit payroll declarations for those two months.
Beukes further clarified that the reprieve does not include writing off any outstanding penalties and interest.
To further accumulation therefore, employers are encouraged to settle such arrears.
“The NTA wishes to express its appreciation to those registered employers who submitted Employer Training Grant (ETG) claims for the 2019/20 financial year submission round by the extended submission deadline as announced on 27 April 2020. This initial COVID-19 intervention to extend the deadline from 1 May 2020 to 5 June 2020 and relax evidence requirements to only include invoices and proof of payment, have had the desired impact,” Beukes said.
He further noted that there has been an increase in claims, compared to the preceding submission round (2018/19).
“In further overcoming employer cash flow constraints, these claims are being processed and payment thereof has started in earnest,” Beukes concluded.