Editorial: Find formula that benefits both informal traders and taxman

The debate around maximising tax revenues has always centred on the taxation of small businesses in the informal sector.

And while policy design to cater for the informal markets has also come under the spotlight in recent times, it is perhaps time we start shifting our attention to the impact of stringent customs and excise activities on the informal economy.

Joblessness has forced thousands of Namibians to find alternative means of survival – some have resorted to importing clothes for reselling purposes, while others have resorted to the controversial Angolan whisky to make ends meet.

It is our view that our informal markets must be protected against market forces, mainly because that is the part of the economy that brings most of our unskilled people to the economic table.

We are also not oblivious to the fact that NamRA is doing a splendid job of maximising tax collection and ensuring that goods and products crossing our borders are duly recorded. But for the benefit of our system, we need to find a lasting working formula that is mutually beneficial for the taxman and the informal market.

While many would agree that the taxman should not be a barrier to economic activities, we must also be cognisant that the regulation of the informal sector is needed in order to prevent actors in that space from running amok and disregarding the country’s laws.