STAFF WRITER
Namibia has been ranked first in Africa for its tax to Gross Domestic Product (GDP) ratio ahead of South Africa, Seychelles and Mauritius for two consecutive years, Namibia Revenue Agency Commissioner Sam Shivute has said.
Speaking at the Government Information Centre this week Shivute said Namibia has overtaken traditional leaders Seychelles and Mauritius in this respect, signalling an improvement in the country’s tax collection syustem.
“ For the past two consecutive years Namibia has been number one followed by South Africa. Our Tax ratio to GDP is the highest and that is both from the International Monetary Fund (IM and African Development Bank.
Tax-to-GDP ratio measures a nation’s tax revenue relative to the size of its economy.
This ratio is used with other metrics to determine how well a nation’s government directs its economic resources through taxation. Developed nations typically have higher tax-to-GDP ratios than developing nations.
Shivute said the emphasis for the commission was to drive voluntary tax compliance across the board and finding measures that allow both Namibian and individuals working and doing business in the country to voluntarily comply than enforce the law.
“Yes we have put measures in place to improve tax compliance. With the establishment of NamRA we have put up a transfer pricing department. We have seen most multinationals who were not paying taxes but since we started auditing them we see them paying,” he said.
The NanRA chief said Namibia still struggles with containing illicit financial flows which are bleeding the whole African continent because of a lack of an advanced mechanism to stop it forthwith.
“The issue of illicit financial flows is very worrisome. If we look at the Thabo Mbeki report it says US$50 billion IS leaving Africa annually. We need to deal with such,” he said.
The High-Level Panel on Illicit Financial Flows from Africa, chaired by former South African President, Thabo Mbeki, identified that Africa loses billions of dollars annually through illicit financial flows (IFFs).
The panel’s report emphasised the need to curb these outflows to retain development resources within the continent. The panel’s work focused on understanding the sources and mechanisms of these flows, as well as recommending practical actions for Africa and the international community to address this global challenge. Their report highlighted that IFFs, estimated at over $50 billion annually, represent a significant drain on African economies.
Shivute said the Commission is also finding ways to deal with undervaluing/ declaration of goods at the country’s p[ort of entry in the long run.
“There has been a misclassification of goods or undervaluing of goods entering Namibia. We have been working with the IMF to improve this and we have a department dealing with this,” he said.
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