Factors affecting tax revenue collection in Namibia: A case study of Namibia Revenue Agency

Abstract

The purpose of this research was to investigate the factors affecting tax revenue collection at NamRA in the period covering the year 2019 up to the year 2023. To the best of my knowledge, prior research has been done that explicitly examines most of the variable affecting Namibia’s revenue collection, especially with regard to the revenue body, NamRA, of interest, research carried out elsewhere had shown unclear results on the factors affecting tax revenue collection in revenue authorities across the globe. This research study used a quantitative approach by employing a questionnaire to gather and analyse research data. From an estimated population of 400, a sample of 195 participants were purposively drawn from NamRA’s employees, mainly managers, supervisors and those in the Ministry of Finance and Public Enterprise, Inland Revenue staff operations. Regression analysis and ANOVA were used through SPSS and Microsoft Excel. Results showed a strong positive correlation between Tax Administrative Factors such as Tax Laws and Policies, Tax Awareness and Education, Tax Incentives and Tax Filing System, and Total Tax Revenue Collected (TTRC). The research recommended robust tax-related strategies such as conducting physical and media-informed tax education and awareness to evasive taxpayers and the general populace of Namibia. Further, the study recommends that NamRA employees be trained through capacity-building programmes and workshops to deal with the optimization of revenue collection. NamRA through the Government should review tax laws and policies regularly to widen the tax base and match modern sources of taxes and ways of tax revenue collection. The study recommends that in order to achieve efficient and successful tax revenue collection, all tax operations within the Namibian Revenue Agency should translated in all local languages and be automated. In addition, the tax systems should be secured and should be regularly updated to prevent unauthorized access. Further studies can be conducted on the same research using mixed methodology and which include large respondents to have more clear representation.