Namibia’S tax revenue is high compared to the size of its economy, an economist says.
This is comparable to that of some highly developed economies, but driven significantly by the country’s share of the Southern African Customs Union (Sacu) revenue pool.
According to data from the International Monetary Fund (IMF), Namibia’s tax revenue as a percentage of the gross domestic product (GDP) was 35.25% in 2024, comparable to the rate for Iceland (33.44%) and New Zealand (32.56%).
Iceland’s GDP is, however, three times larger than Namibia’s – US$33.19 billion in 2024, compared to Namibia’s US$13.37 billion.
As the GDP measures the size of an economy, the 35.25% figure shows how much tax revenue the government collects relative to the size of the economy.
“It tells you how big the tax take is relative to the economy. It is not a tax rate, and it doesn’t tell you what any individual or business pays,” Simonis Storm economist Almandro Jansen says.
The number looks like the tax-to-GDP ratio of much richer countries “mainly because of Sacu”, he says.
“Namibia records its share of the Sacu revenue pool as tax revenue, and this has in recent years made up roughly a third of total revenue. That money is collected mostly on goods entering the common customs area, much of it on South Africa’s imports, not from Namibian taxpayers directly,” Jansen says.
Without counting Sacu revenue, the domestic tax take is similar to countries like South Africa (~20%).
Although the number is striking, Jansen says it does not mean Namibians are taxed at high rates in the same way citizens of Scandinavian countries are.
“The ratio is a national average and says nothing about how the burden is shared. In Namibia the burden falls heavily on a small group: formal-sector employees paying Pay as You Earn, registered companies and the mining sector.
“It’s fair to say Namibia’s formal taxpayers carry a heavy load, but the country as a whole is not taxed like Denmark,” he says.
Sacu revenues are also a significant contributor when considering the country’s revenues overall.
According to the IMF, Namibia’s revenue to GDP ratio is 37.32%. This means 95% of the government’s income comes from taxes, including Sacu.
“Total revenue is tax plus non-tax income, such as dividends from state-owned enterprises, licence fees, fines, interest and grants. In other words, roughly 95% of the government’s income comes from taxes, including Sacu,” Jansen says.
However, economist Abraham Eita says Namibia’s tax rate is quite high.
“Namibia has a progressive tax system: the more you earn, the more you pay,” Eita says.
This means low earners are not paying high income tax. But corporate tax is quite high. The standard corporate tax rate for 2025/26 is 30%, and 37.5% for mining companies.
“One of the biggest complaints we have when [trying to attract] investors is the high tax rate,” he says.
