Fishing sector workers paying more taxes than employers
• NamRa concerned about revenue exports
The fishing industry exported an estimated N$13.7 billion in products during the past financial year, yet only N$713.9 million was collected in tax, most of it paid directly from employees' salaries rather than company profits or VAT.
Nikanor NangoloWindhoek
Namibia Revenue Agency (NamRA) figures show that employees are carrying the bulk of tax contributions in the fishing sector, with worker deductions consistently outpacing company income tax and VAT collections over the past four years.
NamRA Commissioner Sam Shivute confirmed to Namibian Sun yesterday that while the sector continues to post strong export earnings, its tax contributions remain modest, ranging between 4.35% and 5.56% of export value over the past four years.
Last week, Shivute presented figures to the parliamentary standing committee on the economy in Swakopmund which show that between 2021/22 and 2024/25, employees paid a combined N$1.15 billion in tax.
This accounts for 37.5% of the sector’s total N$3.07 billion tax contributions over the four years and by contrast, company income tax amounted to N$751.9 million (24.5%), while VAT contributed N$567 million (18.5%).
Shivute said in 2024/25, the fishing industry exported an estimated N$13.7 billion worth of products, yet only N$713.9 million was collected in tax for that year – and again, most of it came directly from employees’ salaries rather than company profits or VAT.
Who pays?
According to Shivute, employees’ tax rose from N$261.1 million in 2021/22 to N$338.5 million in 2023/24, before easing to N$283.7 million in 2024/25. Staff contributions alone nearly matched the combined totals from company income tax and VAT.
He explained that income tax collections fluctuated, dropping to N$119.6 million in the 2022/23 fiscal year before rising again to N$237.2 million in the 2024/25 fiscal year, while VAT collections remained lower, although they peaked at N$174.4 million in the 2024/25 financial year.
“And let me emphasise: when someone says, ‘I pay this much VAT,’ don’t believe them. Companies don’t pay VAT, they simply collect it on behalf of the state. It’s the same with employee tax. It’s the workers who pay, not the companies,” Shivute told the parliamentary standing committee.
Export earnings versus tax
Figures shared by Shivute indicate that companies’ annual tax revenue from the fishing sector increased from N$593.3 million in 2021/22 to N$713.9 million in 2024/25, as the number of taxpaying companies rose from 1 390 to 1 516.
Additionally, the figures show that export earnings surged from N$10.7 billion in 2021/22 to a peak of N$14.1 billion in 2023/24 before slightly contracting to N$13.7 billion in 2024/25.
Quarterly data from the Namibia Statistics Agency (NSA) shows exports hovered around 100 000 tonnes – 101 173 tonnes in Q2 2024 and 97 077 tonnes in Q1 2024 – suggesting annual volumes above 400 000 tonnes.
Shivute said businesses often highlight their employment numbers, but the resources belong to the state. “The resources belong to the state, and the state needs to get in shape first,” he said.
Pay fair shares
On Thursday he added that NamRA’s priority is encouraging voluntary compliance among companies that have not been paying their fair share.
“We want to encourage companies to pay their fair share of taxes to the state. And we also know that there has been a lot of tax evasion, a lot of these management fees, where money is pushed into management fees and the state is not really getting its fair share of taxes,” he told Namibian Sun yesterday.
Supported by the African Development Bank and Tax Inspectors Without Borders, the agency is stepping up audits.
“We would like to encourage companies: it’s better for them to do voluntary compliance and pay what is right, because we are going to come to them big time,” he added.
Mining, fishing sector GDP contributions
According to the NSA, the fishing sector contributed approximately 4.5% to Namibia’s GDP in 2023, before easing slightly to 4.1% in 2024.
Mining, by contrast, dominates state revenues. Britannica’s Namibia country profile estimates that the industry accounts for nearly 30% of GDP.
The Chamber of Mines of Namibia reported that mining’s share rose from 9% in 2021 to 14.4% in 2023.
Employment figures show fishing supports around 16 000 to 18 000 jobs, while mining employed 20 654 people in 2024, up from 18 189 in 2023 – a 14.6% rise in a single year.
The comparison shows that while fishing sustains significant employment, its GDP and tax contributions remain modest.
Mining, on the other hand, contributes more than triple the GDP share and dominates revenues, despite employing only slightly more people.
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Namibia Revenue Agency (NamRA) figures show that employees are carrying the bulk of tax contributions in the fishing sector, with worker deductions consistently outpacing company income tax and VAT collections over the past four years.
NamRA Commissioner Sam Shivute confirmed to Namibian Sun yesterday that while the sector continues to post strong export earnings, its tax contributions remain modest, ranging between 4.35% and 5.56% of export value over the past four years.
Last week, Shivute presented figures to the parliamentary standing committee on the economy in Swakopmund which show that between 2021/22 and 2024/25, employees paid a combined N$1.15 billion in tax.
This accounts for 37.5% of the sector’s total N$3.07 billion tax contributions over the four years and by contrast, company income tax amounted to N$751.9 million (24.5%), while VAT contributed N$567 million (18.5%).
Shivute said in 2024/25, the fishing industry exported an estimated N$13.7 billion worth of products, yet only N$713.9 million was collected in tax for that year – and again, most of it came directly from employees’ salaries rather than company profits or VAT.
Who pays?
According to Shivute, employees’ tax rose from N$261.1 million in 2021/22 to N$338.5 million in 2023/24, before easing to N$283.7 million in 2024/25. Staff contributions alone nearly matched the combined totals from company income tax and VAT.
He explained that income tax collections fluctuated, dropping to N$119.6 million in the 2022/23 fiscal year before rising again to N$237.2 million in the 2024/25 fiscal year, while VAT collections remained lower, although they peaked at N$174.4 million in the 2024/25 financial year.
“And let me emphasise: when someone says, ‘I pay this much VAT,’ don’t believe them. Companies don’t pay VAT, they simply collect it on behalf of the state. It’s the same with employee tax. It’s the workers who pay, not the companies,” Shivute told the parliamentary standing committee.
Export earnings versus tax
Figures shared by Shivute indicate that companies’ annual tax revenue from the fishing sector increased from N$593.3 million in 2021/22 to N$713.9 million in 2024/25, as the number of taxpaying companies rose from 1 390 to 1 516.
Additionally, the figures show that export earnings surged from N$10.7 billion in 2021/22 to a peak of N$14.1 billion in 2023/24 before slightly contracting to N$13.7 billion in 2024/25.
Quarterly data from the Namibia Statistics Agency (NSA) shows exports hovered around 100 000 tonnes – 101 173 tonnes in Q2 2024 and 97 077 tonnes in Q1 2024 – suggesting annual volumes above 400 000 tonnes.
Shivute said businesses often highlight their employment numbers, but the resources belong to the state. “The resources belong to the state, and the state needs to get in shape first,” he said.
Pay fair shares
On Thursday he added that NamRA’s priority is encouraging voluntary compliance among companies that have not been paying their fair share.
“We want to encourage companies to pay their fair share of taxes to the state. And we also know that there has been a lot of tax evasion, a lot of these management fees, where money is pushed into management fees and the state is not really getting its fair share of taxes,” he told Namibian Sun yesterday.
Supported by the African Development Bank and Tax Inspectors Without Borders, the agency is stepping up audits.
“We would like to encourage companies: it’s better for them to do voluntary compliance and pay what is right, because we are going to come to them big time,” he added.
Mining, fishing sector GDP contributions
According to the NSA, the fishing sector contributed approximately 4.5% to Namibia’s GDP in 2023, before easing slightly to 4.1% in 2024.
Mining, by contrast, dominates state revenues. Britannica’s Namibia country profile estimates that the industry accounts for nearly 30% of GDP.
The Chamber of Mines of Namibia reported that mining’s share rose from 9% in 2021 to 14.4% in 2023.
Employment figures show fishing supports around 16 000 to 18 000 jobs, while mining employed 20 654 people in 2024, up from 18 189 in 2023 – a 14.6% rise in a single year.
The comparison shows that while fishing sustains significant employment, its GDP and tax contributions remain modest.
Mining, on the other hand, contributes more than triple the GDP share and dominates revenues, despite employing only slightly more people.
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