
The Namibia Revenue Agency (NamRA) expects tax revenue from diamonds to decline by N$6 billion this year due to depressed global prices.
NamRA Commissioner Sam Shivute attributed the decline to the poor performance of the diamond sector but emphasized that improved revenue collection in the mining, fishing, and tourism sectors had helped offset the loss.
“We have collected N$83 billion for the 2024/2025 financial year. From a diamond sector perspective, this year we are not getting about N$6 billion compared to last year. But despite the fact that we are not getting N$6 billion from the diamond sector, we are still able to exceed our revenue target come March 2025,” he said.
The commissioner credited the improved revenue collection to NamRA’s steadfast commitment to enforcing tax laws in Namibia.
“We are going to implement tax law without fear or favor. No one should ever think that they are untouchable. Those who we have not started auditing must know that it’s a matter of days because we cannot audit everyone on a daily basis. But the fact that we have not yet reached you does not mean we are not coming,” he said.
Shivute also noted that the agency is strengthening its transfer pricing investigation and auditing capacity in collaboration with the Africa Tax Administration Forum and other developmental partners.
As a result, NamRA has seen improved tax compliance from some multinational and local companies that previously declared losses for over 30 years.
“All of a sudden, we’re seeing some of them declaring and paying N$200 to N$300 million in one year. This is a result of our administrative efforts to ensure everyone pays their fair share,” he said.
Shivute added that while there have been improvements in the mining and tourism sectors, some players in the mining and fishing industries are still not fully complying with tax obligations.
“The years of tax evasion and non-compliance will soon be a thing of the past. And this is very good news for Namibia,” he said.
Namibia’s total diamond production dropped by 4% in 2024 to 2.23 million carats, down from 2.33 million carats in 2023. The average price per carat declined from US$515 to US$426, while unit costs increased from US$246 to US$295. The global diamond market has faced challenges due to weaker demand in China and the rise of lab-grown diamonds.