NAMIBIANS owe the Namibian government a total of N$12 billion in taxes, and may face punitive action from the state in the distant future if they fail to honour their debts.
This is according to the newly established Namibia Revenue Agency (NamRa), which was yesterday officially launched.
The agency will take over the tax collection duties from the Inland Revenue department of the Ministry of Finance.
Sharing figures, Idi Itope from NamRa said that Namibia currently has a total of 887,500 registered tax payers.
He further explained that government needs to raise at least N$32 billion in taxes, but that it has set a target of N$49 billion.
Itope added that currently, 57% of tax payers have submitted their taxes and are in compliance, while the remaining 43% of Namibians have not submitted their taxes or have not paid in full and are thus in the red.
As a result of noncompliance, N$12 billion in capital is owed to government by the tax payer, and cannot be written off.
He explained that this debt is unilateral and includes individuals, SOEs, and private corporations.
The interest rates on unpaid taxes stands at N$8 billion as of 30 September 2021, while penalty payments at N$36 billion.
“That is currently the tax debt stock. If you don’t comply, and I don’t comply, you risk your pension fund and future gratuities. It is cheaper to pay what is due and comply,” Itope said.
He further explained that government will write off 75% of interest accrued on taxes for those that submit their taxes within the grace period ending 31 January 2022.
Itope stated that the most critical of cases are those who do not comply at all and completely evade paying tax.
“If you owe money, this is critical. We will inform you of your duties and try to find out if you have money, and if you fail to comply, we will seize your assets,” Itope warned.