Namibia is looking to curb tax evasion in the country’s energy and mining sectors by establishing a specialized unit within the country’s revenue body, the Namibia Revenue Agency (NamRA).
NamRA’s Commissioner, Sam Shivute, stated that for many years, the country has been losing revenue from transactions in the petroleum, gas, renewable energy, and mining sectors.
“The heydays are over as we move closer to developing and refining policies that will allow us to tax the oil, gas, and renewable energy sectors so that the state can receive its fair share of revenue from its natural resources, which have been plundered for years due to weak legislative systems,” said Shivute.
He also mentioned that NamRA will investigate the sale of EPL (Exploration and Production Licenses) and mining licenses to foreign companies operating outside Namibia without paying the required country taxes.
“Before 2015, we observed instances in Namibia where holders of EPL and mining licenses sold such licenses to foreign companies operating outside our country’s jurisdiction. Consequently, the state was unable to tax these transactions because our country’s laws were based on resource taxation. Therefore, when such transactions occurred outside Namibia, the state gained nothing from the proceeds of sales or donations, even though the minerals originated here,” he explained.
“I must commend our lawmakers for passing the Income Tax Amendment Bill, Act 13 of 2015, which amended section one of the income tax, broadening the definition of gross income to include the taxation of proceeds from petroleum and other mineral extractions. The good news is that those who have obtained petroleum, EPL, and mining licenses after 2015 will now be subject to taxation, even if such transactions took place abroad. We will catch up soon.
