Informal tax raises ire

The Chinese traders are the ones who should be paying taxes and not the informal sector, says the official opposition's youth league.

13 July 2018 | Politics

The Popular Democratic Movement (PDM) youth wing has called on government to rather focus on tax-dodging businesses, including forcing the Chinese to pay tax, instead of going after the informal sector.

It also has warned the country's informal sector has not developed to the economic and technical levels required to adequately and fairly tax it, without significantly collapsing the market and creating massive employment.

PDM Youth League spokesperson Maximalliant Katjimune was responding yesterday to moves by Inland Revenue to introduce a so-called presumptive tax targeting the informal sector.

He called the development misguided.

“What the minister of finance and the Inland Revenue Directorate must focus on is taxing big businesses that have been evading the government's tax books for years. The government must also step up efforts to properly tax Chinese businesses who are operating in the country,” Katjimune said.

He said the introduction of a presumptive tax regime would hurt the informal sector and the economy as a whole.

Inland Revenue commissioner Justus Mwafonge this week said the introduction of a presumptive tax regime was not a new development, as individuals who earn more than N$50 000 per annum are in any case required to pay taxes. “This is nothing new. Informal traders have always been taxed. It will all depend on how the business is registered. This is nothing new,” Mwafonge said.

He was responding to questions about a pamphlet published and distributed by the finance ministry, which warns explicitly that hair salons, whether operated in a city centre, town, informal market, incubator centre or at home, are subject to tax.

The same applies to taxi and bus transport businesses, as well as hawkers, whether they sell their products door to door, at an open market, on the side of the road, under a tree, in a neighbourhood or from the boot of a car.

“Plumbing services, if you have people who call you to fix their broken taps and pipes for a fee, record such income and pay tax. Kapana sellers, if you roast meat and sell it, you are required to pay tax on such income,” the pamphlet reads further.

According to Mwafonge the pamphlet campaign was also the ministry's way of informing taxpayers, while educating them on their tax responsibilities.

“We are just trying to simplify things,” he said.

He said there is also a slim possibility that the ministry of finance would introduce presumptive taxes soon. According to him, a lot of work still needs to be done before it is implemented.

“Presumptive tax is still a work in progress,” Mwafonge said.

Government first mooted the idea of a presumptive tax regime when then finance minister and current Prime Minister Saara Kuugongelwa-Amadhila tabled the 2014/15 national budget.

The incumbent, Calle Schlettwein, has maintained the introduction of presumptive tax regime would be an attempt to broaden the tax net. According to him, the measure is also not punitive.

OGONE TLHAGE

Similar News

 

PDM outraged over unsolved murders

1 week ago - 13 September 2018 | Politics

The Popular Democratic Movement (PDM) claims that the murder of nine-year-old Cheryl Avihe Ujaha was the eighth of its kind, all of which remain unsolved,...

PDM ta gandja uusama kopolisi

1 week ago - 13 September 2018 | Politics

Ongundu yoPopular Democratic Movement (PDM) oya popi kutya edhipago lyokanona komimvo 9, Cheryl Avihe Ujaha oli li edhipago etihetatu moshilongo moka inaku monika natango...

PDM bleeds for jobless graduates

1 week ago - 11 September 2018 | Politics

The Popular Democratic Movement Youth League (PDMYL) has criticised the increasing unemployment among university graduates. In a media statement this week, PDM youth leader Maximalliant...

Swartbooi's LPM lays down gauntlet

2 weeks ago - 07 September 2018 | Politics

The Landless People's Movement (LPM) has handed in its application to the Electoral Commission of Namibia (ECN) in which it seeks to register as a...

LPM registers with ECN

2 weeks ago - 06 September 2018 | Politics

The Landless People’s Movement (LPM) this morning handed in its application to the Election Commission of Namibia (ECN) to be registered as a political party....

Let's get the tape of CC meeting – Diescho

2 weeks ago - 05 September 2018 | Politics

Professor Joseph Diescho has challenged the Swapo Party to release a recording of the Central Committee meeting that took place in Rundu on the eve...

Without socio-economic justice, liberty will be fleeting - Geingob

3 weeks ago - 26 August 2018 | Politics

President Hage Geingob says although Namibians are enjoying the fruits of a democratic society, people should not be under the illusion that the fight for...

Dungeon storytellers, land activists are frustrated, failed politicians -...

4 weeks ago - 25 August 2018 | Politics

President Hage Geingob has labelled those opening the Lubango dungeons’ Pandora’s Box and those using the land issue for personal gain as frustrated and failed...

PDM concerned about strikes

1 month - 16 August 2018 | Politics

The Popular Democratic Movement (PDM) has expressed concern about the growing number of strikes and mass actions by disgruntled employees lately. The official opposition party...

Namvet backs off on party

1 month - 15 August 2018 | Politics

Despite having provisionally called off their demonstration to parliament to hand over a petition to Speaker Peter Katjavivi on Monday, Namvet says it will continue...

Latest News

Baby now four weeks on...

1 day - 21 September 2018 | Social Issues

Helao Nafidi mayor Eliaser Nghipangelwa has called on a homeless family, which includes a one-year-old baby girl, to visit him so he can “provide them...

Nationalise half of white farms

1 day - 21 September 2018 | Agriculture

Constitutional expert Nico Horn believes that half the land currently owned by white farmers can be nationalised in some way, with just compensation being paid.“Now...

Looking at the positive side

1 day - 21 September 2018 | People

Octavia Tsibes To be profitable in a highly competitive market and with the recession that is already in the eighth quarter, must not be...

Information is like money

1 day - 21 September 2018 | Columns

Llewellyn le HanéIn the modern world, the pursuit of money has become an obsessive activity for many. There’s nothing wrong with that; as long as...

Jobs: What is the strategy?

1 day - 21 September 2018 | Columns

We have lambasted government on numerous occasions for not actively coming up with tangible action plans insofar as fixing our ailing economy is concerned. For...

Kagola believes each achievement is...

1 day - 21 September 2018 | People

Justicia Shipena Leena Ndahafa Kagola is the learning and development practitioner responsible for marine training at Namport. Her role includes analysing learning and development needs,...

What is land reform all...

1 day - 21 September 2018 | Economics

Over the past few months, these essays in Market Watch have attempted to shed light on features of Namibian livelihoods and land that are not...

Sowing into the young generation

1 day - 21 September 2018 | People

Octavia Tsibes Museta hails from the Zambezi Region, where she completed her secondary schooling. She completed her tertiary education at Unam, where she...

161 govt vehicles unaccounted for

1 day - 21 September 2018 | Government

The department of transport within the ministry of works cannot account for 161 vehicles with a value of N$59 million.The anomaly was uncovered when the...

Load More