‘Nice’ But Disastrous
WHILE I was comparing and contrasting the arguments of Jackson Mwalundange and those of Cuana Angula (The Namibian 8 15 February 2013) to figure out which one made more sense, the central government in the person of the finance minister, central bank governor, and trade and industry deputy minister and others held a meeting at Helao Nafidi [Ohangwena Region].
Their message was clear: EPZ [export processing zone] companies at the town must pay the normally exempted taxes to increase government revenue! I could not believe my ears.
Such change would only force companies to close down and lay off workers. Some may sue the government for breach of contract. In both cases government would lose, as retrenched workers cease paying income tax and VAT and non-EPZ companies lose customers, close down and stop paying taxes. One wonders if the Namibia Chamber of Commerce and Industry is in an effective position to rescue Oshikango, and, of course, turn the government elsewhere for the needed revenue. It could be China!
The finance minister and government apparently have not learned much from the Chamber of Mines of Namibia. I, then, started agreeing more with Mwalundange’s arguments.
Then on Monday the 18th of February the cat was out of the bag: newspapers got it from the finance ministry’s PS, Erica Shafudah, that government was bankrupt! She was reported as saying there was no money to pay pensions and disability grants for the last two months of the financial year and it had no money to pay the public servants’ 8 percent increase pressurised by the trade unions last year.
(There were union-led strikes, such as one by teachers that forced the government to raise salaries while it had no money.) The Contingency Fund of the Treasury is potentially depleted – a risky situation.
I went back to the articles by the two gentlemen, and made up my mind: Mwalundange was correct! The idea to tax EPZ companies at Oshikango is “nice”, but economically disastrous. The actions by the unions last year were “nice” but catastrophic to the government and nation.
I could also suggest that the affiliation of trade unions to the ruling party in a democracy, alone, was a sure seed for an economic and political calamity, that can lead to economic crisis and, hence, political instability and, on to the revolution Angula is talking about.
Mwalundange is right: we, as a nation, need to sit down in our little and big corners and come out with options from all over us and weigh each carefully before we act and fall into the situations like the one we have just fallen into.
Hafeni Kanapo
Ongha