NTA drags Windhoek to court over N$51 million in unpaid levies

A legal battle over unpaid vocational education and training (VET) levies between the Windhoek municipality and the Namibia Training Authority (NTA) has revealed the City owes the authority more than N$51 million.The municipality has, however, challenged the amount – dating back more than ten years – arguing that the accumulated penalties and interest are excessive and would place an unnecessary financial burden on the municipality, potentially affecting the delivery of essential public services.The municipality has also questioned the accuracy and fairness of the charges imposed by the NTA.The legal proceedings come amid public criticism of the City’s strict enforcement of municipal bill payments, including the disconnection of water and electricity services for residents unable to settle their accounts.Non-compliance According to documents filed by the NTA in the Windhoek High Court in October 2023, the City has been legally obligated to contribute to the VET levy since 28 March 2014, when it was formally registered as a levy-paying employer.The municipality’s alleged ongoing non-compliance has resulted in the accrual of substantial interest and penalties, culminating in a total debt of N$51 474 305.61 as of July 2022, according to court documents. The matter appeared before judge Beatrix de Jager in court on Wednesday for interlocutory proceedings.With the exception of exempted organisations, all employers operating within the country with an estimated annual payroll of N$1 million or more for each financial year are required to register with NTA and pay the VET levy.This levy, set at 1% of an organisation’s annual payroll, is aimed at supporting the development of vocational skills across the country.Defence mountedIn a special plea filed by the municipality’s company’s lawyer, Gaenor Michaels, in May 2024, the City noted that the alleged debt dates back to 1 April 2014, yet the summons was only officially served nine years later.The City is invoking the Prescription Act, which limits the period during which a debt can be legally claimed, arguing that any amounts due before October 2020 have expired and should no longer be recoverable.It contends that the penalties and interest are excessive and would impose an unnecessary financial burden on the municipality, potentially impacting the delivery of essential public services.On top of that, they maintain that they should not be liable for the levy at all, arguing that, as a government entity, the law may not apply to it in the same manner.As a result, the City has initiated legal action to challenge the validity of the law itself, requesting the court to dismiss the claim and to recover any payments it believes were made in error.rita@nmh-hub.com.na

NTA drags Windhoek to court over N$51 million in unpaid levies

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Namibian Sun 2025-05-01

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NTA drags Windhoek to court over N$51 million in unpaid levies

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Namibian Sun 2025-05-01

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