allafrica.com 26 Jan, 2021 15:15 am

Namibia: Business Registration Up, but Taxpayers Decline

The country's ballooning budget deficit and increased appetite for debt should not be surprising - many businesses are not registering for tax, nor are they paying tax.

According to information from the Ministry of Finance, the country has recorded a decline of 7 109 in the registration of eligible taxpayers, including close corporation and private limited companies, since 2018.In 2017, the finance ministry registered 14 147 new close corporations and private companies as taxpayers.It is not clear whether the inefficiency lies with the finance ministry or whether taxpayers deliberately evade paying tax.Tonateni Shidhudhu, finance ministry spokesperson, this month said the registration of taxpayers is conducted in three ways: through walk-ins, online registrations, or through Bipa sending taxpayers information for registration.

It appears this disconnect between Bipa and the finance ministry is keeping some change from Namibia's tax coffers.Last year, as Covid-19 wrecked the economy, only 7 038 new close corporations and private companies were registered.

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