Labour unions say Namra should pay back the money

Namibian labour unions say tax refunds should be done by the Namibian Revenue Agency (NamRa) to avoid administrative costs for businesses.

In a statement issued yesterday, Erastus Shapumba, the president of Namibia Local Businesses Association (Naloba), said the tax relief is welcomed, but paying refunds falls with Namra’s ambit.

“We cannot expect that employers take on the work Namra should do,” he said.

Shapumba said the Ministry of Finance and Public Enterprises did not consult the business community, although there are administrative implications for businesses… especially smaller businesses which would really struggle with the additional administration,” he said.

Shapumba said the higher threshold means many employees are no longer required to pay income tax.

“From which returns should employers then recover these expenses? How would they pay tax consultants to support them with the required implementation?” he asked.

According to the statement, calculating and deducting the reimbursement amounts from future income tax payments would lead to an increased workload and complexity in payroll processing for employers.

Elias Shikongo, the president of the Namibia Employers’ Federation, says businesses should have been consulted about the implications of a tax refund prior to its announcement.

“We believe it is crucial for the government to engage in meaningful consultations with employers and labour union representatives before implementing significant policy changes that affect the business environment,” he said.

A statement by the National Union of Namibian Workers (NUNW) says there should be greater transparency and dialogue between the government, employers and employees to address issues related to taxation.

“… and to ensure a smooth transition to the new taxation regulations,” NUNW secretary general Job Munario says.