Tax laws lambasted

Tax expert Cameron Kotze has criticised government’s tax laws, saying they are not accommodative enough to create a thriving business environment, nor are they investor friendly.Kotze made these remarks at a pre-budget discussion ahead of the tabling of the 2024/2025 fiscal budget scheduled for next week, held by the Economics Association of Namibia.“There is a lot of money caught up in the system. I do not think the Namibia Revenue Agency (NamRA) is as sufficient as they put it. I think the Integrated Tax Administration System (ITAS) is very good, but it is not being used to its full potential, and the delay in value-added tax (VAT) refunds is the reason our economy’s wheels are not turning smoothly,” Kotze said.Kotze noted that tax refunds exceed the legally stipulated time frame in which they were supposed to be paid.“If I am an exporter, I should be getting back my VAT within the two-month period that the act prescribes,” he said.Scaring away investorsAnother drawback of Namibia’s tax legislation is that it does not encourage investor appetite to start businesses that could create employment.“Our tax policies are not focused and geared up yet to get new businesses to start up and create employment. My big gripe with our tax legislation is that it is not business friendly” Kotze said.Government’s inability to create a new tax policy to replace the Export Processing Zone (EPZ) and its high credit tax rate are another limiting factor in Namibia’s regional competitiveness, Kotze argued. “I am disappointed that government has not put in place legislation to replace the EPZ legislation. We have got the highest corporate tax rate in the region, [and] our tax rates for individuals have not been amended for a number of years now,” he said.Economist Floris Bergh echoed Kotze’s sentiments, and also called for a review of Namibia’s tax rates for individuals, saying it was creating a fiscal drag.“We need an adjustment in the tax table to take into account fiscal drag. The fact that tax tables are not adjusted for inflation means that you land in a high tax bracket just to keep on track with inflation,” Bergh said.The tabling of the budget is scheduled for 28 February.

Tax laws lambasted

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Namibian Sun 2025-03-07

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Tax laws lambasted

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Namibian Sun 2025-03-07

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