Taxes for church-run businesses?
Engoyi (kk/ak) • Former finance minister Calle Schlettwein has renewed his call to treat profit-making ventures run by churches, NGOs and trusts in the same way as private companies for tax purposes. Speaking to Network Media Hub (NMH), he said the era of “tax-free commercial activity” under the umbrella of charitable organisations should end to ensure a level playing field in Namibia’s market.
The focus is on institutions that, alongside their social or religious work, operate businesses such as bakeries, printing shops or retail outlets. According to Schlettwein, these sometimes benefit from tax exemptions because they are registered as non-profit entities. However, anyone offering goods or services in the marketplace should also comply with the rules that apply there. As an example, he cited a church-run bakery which, in his view, should be taxed in the same way as any other.
Schlettwein argues that private entrepreneurs must account for corporate tax, value-added tax and employee-related levies, while church-linked businesses can offer similar services without the same tax burden. This, he says, leads to unfair competition. A fair tax system should therefore cover all commercial activities, regardless of who operates them. Donations, tithes or funds intended for spiritual work should remain untouched. Once an institution enters the marketplace, however, it becomes an economic actor.
Within the current government the issue does not appear to be a priority. Finance ministry spokesperson Wilson Ashikoto said on request that the idea has been “put on hold” and that there are currently no discussions about it.
Church representatives have previously stressed that profits from their business activities flow back into community work, poverty relief and social programmes. In their view this justifies their special status. Parts of the private sector, however, have criticised the situation for years. Small business owners complain that “charity-owned” enterprises can undercut market prices because they do not face the same tax and compliance costs. Schlettwein’s remarks have now reopened the debate.
