MEFMI Provides Technical Assistance on the Operational Readiness of NAMRA

Since 2014, MEFMI has been advisor to the Government of Namibia, which has been working towards the establishment of a revenue agency. Namibia is the only MEFMI member state which is yet to establish an independent revenue authority.

In 2013 the Government of Namibia took steps to establish the Namibian Revenue Agency (NAMRA) to improve operational efficiency and provide a platform through which continued tax administration can be facilitated and accelerated.In March 2016MEFMI was invited to Namibia to provide technical assistance toreview the draft Namibia Revenue Agency (NAMRA) billand operational readiness.

The mission to Namibia was comprised of Mr. Dumisani Masilela, Commissioner General of the Swaziland Revenue Authority, Mr. Joseline Ogai, Deputy Commissioner for Research, Kenya Revenue Authority (KRA) and Mr. Amos Cheptoo, MEFMI Programme Manager-Fiscal Policy.

The mission team worked in close collaboration with a task force team chaired by Dr. Bernie Zaaruka from the Bank of Namibia, who is also a MEFMI Fellow on secondment to Ministry of Finance in Namibia.The task force had been mandated with fast tracking the implementation of the Cabinet’s decision to establish a revenue agency.

As part of the process of advising the Namibian authorities, the mission reviewed thedraft NAMRA bill in the context of best practice, as well as tapping on the experience of other countries that have set up Semi-Autonomous Revenue Agencies (SARA’s). They also reviewed the activities leading towards the implementation of the NAMRA bill. Policy advice as well as an assessment of the human resource, administration, ICT and related issues were also provided to the task force.

To undertake this assignment, the mission held consultations with implementing departments in the Namibia Ministry of Finance and relevant agencies to understand the context of their engagement with the process, their preparations for the transition and providing advice. A report with recommendations to the task team was also produced and submitted to authorities for considerationas they fast track the implementation of the Namibian Government’s decision to establish a revenue agency.
Informed by regional goodpractices, a number of considerations went into addressing several issues which included determination of the level of autonomy of the proposed NAMRA, a governance framework, an accountability framework and the scope of revenue collection.
Determining the level of autonomy of the proposed revenue agency involved assessment of the Namibian Revenue Agency legal form,budget flexibility, financial framework, human resource policies and operational autonomy. The mission worked with the task force to review the NAMRA bill, with some provisions within the bill which did not meet the threshold being recommended for revision.

With the formation of any new organisation, adequate resource planning is needed in key operational areas. The optimal structural set up of the revenue agency was reviewed and it was recommended that the structure of the new organisation should minimise changes and to the extent possible, incorporate Customs and Excise and Inland Revenue Departments as they are. With regard to the staffing needs of the agency, effective recruitment practices need to be put in place and a strong induction program required before an officer is released to his/her duties. There is also a need for modular training once staffare working for the agency. E-learning opportunitiesand potential collaboration with countries that have training programs in place were discussed as options.

The information technology (IT) platforms which will be inherited by the new agency are impressive. The IT platforms are relatively new, and the Customs and Excise Department has ASYCUDA World, while the Inland Revenue Department is in the latter stages of developing their Integrated Tax Administration System (ITAS). Emphasis was placed on the need to ensure that the processes are assigned owners who are going to continuously monitor adherence and produce non-conformance reports for purposes of taking decisions on corrective measures, which would include amending the process where necessary.
During the mission key stakeholders were engaged and sensitized as to the progress of and work required in moving toward the establishment of a revenue agency. The MEFMI team met with officials from the Namibia Ministry of Finance, the Bank of Namibia, the Government Treasury Department,the Auditor General’s Office, the Customs and Excise Department and the Inland Revenue Department.