Tax amnesty extension sought
The Namibia Local Business Association (NALOBA) has asked the government to extend the Namibia Revenue Agency’s (NamRA) Tax Amnesty Programme by a further 24 months beyond its 31 October 2026 deadline, citing financial difficulties facing local businesses.
NALOBA president Dr Erastus Shapumba said many businesses had been unable to benefit fully from the programme because they could not afford to settle their outstanding capital tax before the deadline.
The programme provides 100% relief from interest and penalties on outstanding tax, provided taxpayers settle the principal tax owed and submit all outstanding returns.
Shapumba said the initiative had given businesses, individuals and traders an opportunity to regularise their tax affairs. However, the economic effects of the Covid-19 pandemic continued to weigh on businesses across several sectors.
Many small and medium-sized enterprises (SMEs) had closed or become inactive during and after the pandemic, leaving them with little or no income to settle their tax debts, he said.
“Many of these businesses currently generate little or no income and are therefore unable to settle the outstanding capital tax required to qualify for relief,” Shapumba said.
He also cited limited access to finance, saying struggling businesses were finding it difficult to secure bank loans and other funding needed to resume operations.
Without access to capital, businesses could not restart trading, generate revenue and meet their tax obligations, he said.
NALOBA argued that extending the amnesty would give SMEs, which play an important role in employment and household incomes, more time to rebuild their operations before settling outstanding tax liabilities.
The association also highlighted the impact of the foot-and-mouth disease outbreak on businesses, particularly farmers and financial institutions with exposure to agriculture and food security.
Shapumba said the outbreak had delivered an economic shock across the agricultural value chain, with the full extent of the damage yet to be assessed.
NALOBA said some taxpayers risked losing the benefits of the amnesty despite being willing to comply with their tax obligations, arguing that financial constraints, rather than an unwillingness to pay, were the main obstacle.
The association has asked the government to extend the programme by two years, allowing struggling businesses to recover gradually, generate income and settle their outstanding tax liabilities.
It said the additional time would also enable taxpayers to submit outstanding returns and bring their tax affairs into compliance.
NALOBA argued that an extension could improve revenue collection over time by allowing more taxpayers to settle their debts rather than remain in arrears.
The association said the proposal would support business recovery, help preserve jobs and contribute to broader economic growth.
