Improved collections will boost revenue - Schlettwein

As Namibia battles serious economic growth threats, the need to improve state revenue collection has never been greater.
This was the message shared by the minister of finance, Calle Schlettwein, with staff in Windhoek on Friday.
Friday’s gathering was the second of two general staff meetings Schlettwein has held this year as part of his ministry’s action plan.
It was also, according to the minister, an opportune time to discuss how the national budget was panning out.
In that regard, the minister recapped that Namibia’s growth projections have had to be adjusted downwards since the budget’s announcement, given lower GDP and revenues projected, which subsequently led to a higher than anticipated budget deficit.
The latest statistics released by the Namibia Statistics Agency (NSA) this month showed that the domestic economy slowed down to 5.3% in 2015, compared to 6.4% growth experienced in 2014.
“Revenue is under significant pressure,” Schlettwein told ministry staff, further noting a decline in revenue from the South African Customs Union (SACU), which previously covered a third of the country’s income.
The minister said rather than focusing on adding more taxes or raising current levies, the ministry’s most assured potential for improved revenue would come from improved collections.
“I’m convinced we can bring in significant amounts still by addressing existing slackness in revenue collection,” the minister said.
Initiatives to help staff address non-compliance by domestic tax-payers include recently announced certificates of good standing to be issued to loyal taxpayers, which would allow them to do further business with the government.
Another is current efforts to send out teams into the field to ensure that operating businesses are registered and comply in full with what is required of them.
“We need to show more presence on the ground,” Schlettwein said.
The minister also noted on-going reforms which promise to improve efficiency in the Ministry of Finance, including transforming the Department of Inland Revenue, as well as the ministry’s procurement function, to semi-autonomous agencies.
Finally, the minister stressed the importance of individual performance appraisals, which he himself is subject to as well.
“Appraisals should not be seen in a negative light or a time to place blame. I would rather encourage you to embrace the positive thinking behind it,” Schlettwein said.
“Do not be afraid to put up your target and go for it. Often, one thinks that you might make life easier for yourself by putting up lacklustre goals. But the satisfaction you get from doing the least, is often limiting in itself.”

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