There are only two certainties in life: death and taxes.
Benjamin Franklin, one of the founding fathers of the United States, made this observation in 1789 when he wrote that nothing in this world could be more certain than death and taxes.
Franklin was more than a statesman. He was also an inventor, printer, writer, revolutionary and diplomat whose practical mind produced inventions such as bifocals, the Franklin stove and the lightning rod.
Whether we like it or not, death is part of the cycle of life. Taxes are equally unavoidable: every country enacts tax laws and then develops systems to collect what is due.
That reality explains why tax collection is not only a legal function, but also a public trust issue. When revenue authorities deal openly and helpfully with taxpayers, compliance becomes easier to understand and harder to avoid.
Improved tax collection was long overdue. If Namibia is to fund the public services and infrastructure its people need, compliance cannot be optional; it is the duty and responsibility of all.
The Namibia Revenue Agency (Namra) routinely reminds that the taxman is not an enemy, but a partner in helping taxpayers understand and meet their obligations. The message is meant to show that the government’s decision to set up Namra was not merely administrative, but a practical step toward improving tax compliance and service.
Although Namra only became operational in April 2021, it has proven its worth. More importantly, it appears to have brought an attitudinal change among the officials entrusted with Namibia’s tax collection responsibilities.
What stands out most is a clear willingness by Namra officials to guide, assist, accommodate and respond to taxpayers.
Taxes fund the means to run schools, hospitals and other state institutions, support social services and finance capital and development projects such as roads, dams, bridges, railways, harbours, and airports.
Taxes are collected from the country’s population, irrespective of age, gender, social standing or employment status, by way of a value-added tax (VAT) against consumption. Everyone pays VAT when buying clothing, shoes, furniture, cellphone airtime, food, and other daily needs.
As for enterprises, a percentage of profit generated by the firm is paid as corporate tax.
The pay-as-you-earn (PAYE) tax collection system applies to salaries with a progressive tax rate applied, the first N$100 000 tax-free and then increasing progressively.
PAYE is a fair system of taxation, with the collection threshold structured so that staff receiving lower pay are exempted, and on a sliding scale, big earners pay a higher percentage.
Reportedly, Namra’s efforts to close the net on tax dodgers are yielding results, with hundreds of previously unregistered businesses and individuals now appearing on the agency’s radar.
Enhanced tax collection is not new, but Namra appears determined to pursue it more consistently, and the available figures suggest that revenue targets are being met.
Improved tax collection was long overdue. If Namibia is to fund the public services and infrastructure its people need, compliance cannot be optional; it is the duty and responsibility of all.
There is a legitimate public expectation that tax collected should be applied more efficiently and less wastefully.
The real issue, therefore, is not whether Namibia should collect taxes. It must. The issue is whether collection is done fairly, transparently and with a service mindset that encourages compliance rather than resentment.
– Danny Meyer is reachable at danny@smecompete.com
