NC fails in its attempt to stall passing of VAT Bill

MEMBERS of the National Council were left with egg on their faces yesterday when they attempted to push for the Value-Added Tax Amendment to be referred to a Standing Committee for clarity.

Time constraints made it impossible to stall the passing of the Bill for the purpose of better explanation and motivation for changes, as requested by some councillors. Shortly after the sitting began, Vice Chairperson of the Council Margareth Mensah reminded the House that a constitutional provision required the Council to act on legislation dealing with taxes and public monies within 30 days of it being referred to the NC by the Speaker of the National Assembly.The Bill under review was referred to the Council on July 13.When the House resumed on Tuesday, UDF MP for Kunene, Dudu Murorua, was the first to express his dissatisfaction that several issues in the Bill left him baffled as to what they would mean for the public.Murorua appeared to have lost sight of the intentions of the Bill, bemoaning a situation in which MPs had not received their Pay As You Earn forms, which meant they could not submit their individual tax returns.He then complained that it was unfair to levy a penalty of 20 per cent a year on those who failed to pay their VAT in time because of the administrative hiccups of the State.Individual taxation is regulated under a separate law.Nevertheless, MPs continued to pursue the argument of unpaid taxes by civil servants.The Swapo parliamentarian for Oshana, Henock ya Kasita, argued that the State should first pull up its socks before penalising those who didn’t pay their taxes.”We are not told the causes of unpaid taxes.Why not act and address the causes [first]?” he asked.He went as far as to suggest that action be taken against permanent secretaries because civil servants had not been able to submit their returns on time.Swapo MP for Omusati Generosa Andowa also complained that she had not yet received documentation from Government to allow her to submit her returns.She also took issue with the alleged miscalculation of taxes by employers, and said it was unacceptable that the taxpayer was held responsible for such situations.Yesterday, Murorua once again took to the floor to raise his concerns during the committee stage of the VAT Amendment Bill and to ask for it to stand over for “necessary explanations”.He argued that making improvements to residential property subject to taxation would gravely affect poor Namibians who struggled to acquire property.Murorua also sought clearer definition on the kinds of organisations that would be allowed to import goods at a zero rate.In the wake of not being permitted to stall passing the Bill for the purpose of clarity, Mensah promised the House that they would seek an audience with the Minister of Finance on the matter.If the Council still had amendments to table, she said permission would be sought to have them considered in the National Assembly.The National Council usually has three months to review a Bill after it has been passed by the National Assembly.Shortly after the sitting began, Vice Chairperson of the Council Margareth Mensah reminded the House that a constitutional provision required the Council to act on legislation dealing with taxes and public monies within 30 days of it being referred to the NC by the Speaker of the National Assembly.The Bill under review was referred to the Council on July 13.When the House resumed on Tuesday, UDF MP for Kunene, Dudu Murorua, was the first to express his dissatisfaction that several issues in the Bill left him baffled as to what they would mean for the public.Murorua appeared to have lost sight of the intentions of the Bill, bemoaning a situation in which MPs had not received their Pay As You Earn forms, which meant they could not submit their individual tax returns.He then complained that it was unfair to levy a penalty of 20 per cent a year on those who failed to pay their VAT in time because of the administrative hiccups of the State.Individual taxation is regulated under a separate law.Nevertheless, MPs continued to pursue the argument of unpaid taxes by civil servants.The Swapo parliamentarian for Oshana, Henock ya Kasita, argued that the State should first pull up its socks before penalising those who didn’t pay their taxes.”We are not told the causes of unpaid taxes.Why not act and address the causes [first]?” he asked.He went as far as to suggest that action be taken against permanent secretaries because civil servants had not been able to submit their returns on time.Swapo MP for Omusati Generosa Andowa also complained that she had not yet received documentation from Government to allow her to submit her returns.She also took issue with the alleged miscalculation of taxes by employers, and said it was unacceptable that the taxpayer was held responsible for such situations.Yesterday, Murorua once again took to the floor to raise his concerns during the committee stage of the VAT Amendment Bill and to ask for it to stand over for “necessary explanations”.He argued that making improvements to residential property subject to taxation would gravely affect poor Namibians who struggled to acquire property.Murorua also sought clearer definition on the kinds of organisations that would be allowed to import goods at a zero rate.In the wake of not being permitted to stall passing the Bill for the purpose of clarity, Mensah promised the House that they would seek an audience with the Minister of Finance on the matter.If the Council still had amendments to table, she said permission would be sought to have them considered in the National Assembly.The National Council usually has three months to review a Bill after it has been passed by the National Assembly.