Assessment of the impact of tax reforms on the Namibia tax system
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Date
2024
Authors
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Publisher
University of Namibia
Abstract
The study sought to assess the impact of tax reforms that were implemented from 2015 to
2021 on the Namibian tax system. The study was undergirded by the Theories of
Distributive Justice and Limitation on Taxation and employed a sequential exploratory
mixed-method research approach. Through purposive sampling, a total of hundred and
fifteen (115) participants from the NamRA Domestic Tax Department and NamRA Legal
Department participated in the study. Moreover, the study reviewed documents such as
the Government Gazettes of Namibia on the Promulgation of Income Tax Amendment
Act published from 2015-2021 and annual reports of the Ministry of Finance and Public
Enterprises for the same period. The study administered a structured questionnaire to
collect primary data on the impact of reforms on the three tax heads Individual Income
tax, Corporation Income, and Value-Added tax. Consistent with other scholars, the study
found that tax reforms in Namibia have improved the revenue mobilisation capacity,
expanded the tax base, and enhanced public internal revenue generation. Value Added
Tax Reforms in Namibia sought to boost the country’s manufacturing capacity and attract
foreign investment to Namibia and these findings were in addition to those noted by
researchers in other countries. Furthermore, the study findings indicated that Individual
Income Tax reforms in Namibia tend to be positively correlated with revenue with a 2.92
correlation coefficient and p-value= 0.075, while Corporation Income Tax reforms are
statistically insignificant and reforms on Value Added Tax were positively correlated with
Value-Added Tax Revenue with a 2.85 correlated coefficient and p-value= 0.034. The
study also confirmed that the powers and functions of NamRA were not fully utilised
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towards individuals, corporations’ income and Value Added Tax reforms on the Namibian
tax system. The study further recommends the board of directors for NamRA to ensure
that the agency exercises its duties and power to its full capacity by implementing internal
control measures to ensure that individuals, corporations, and Value value-added tax
reforms on the Namibian tax system are not stronger in words than in action.
Description
A thesis submitted in fulfilment of the requirements for the Master of Science in Master of Science in Accounting and Finance
Keywords
Tax reforms, Revenue, Individual income tax, Corporation Income Tax, Value Added Tax, University of Namibia, Namibia