The Bank of Namibia and the Namibia Revenue Agency (NamRA) on Wednesday officially launched the country’s first Trade Verification System (TVS).
The TVS is expected to reduce the estimated 33 billion Namibia dollars (about 2.2 billion U.S. dollars) of potential tax-related offenses as estimated by the Financial Intelligence Center in the National Money Laundering, Terrorist and Proliferation Financing Risk Assessment Report of 2021.
Speaking at the launch, Deputy Executive Director for Economic Policy of the Ministry of Finance and Public Enterprises Oscar Capelao pledged the government’s support in denouncing activities that enable illicit financial flows that adversely impact sustainable development.
“Over the years, there has been noted misconduct among importers who breach the country’s laws and regulations. The TVS is a tool that we will use to the best of our ability to ensure that there is improved decision-making due to timely data and real-time reporting. The overall goal is to have a tax compliance ratio up as it relates to imports and exports,” he said.
The central bank’s Deputy Governor, Leonie Dunn, expressed confidence in the new system.
“We are now comfortable to be among the first few countries in Africa that have successfully developed and implemented a TVS system that monitors cross-border financial transactions as they relate to the import and export of goods,” she added.
NamRA Commissioner Sam Shivute meanwhile said the collaborative effort underscores the dedication to promoting transparency and compliance in trade operations.
Once fully integrated, the TVS is expected to promote seamless and paperless trading processes. Commercial banks, clearing agents, the Namibia Revenue Agency and the Bank of Namibia will all have access to the same documentation regarding a specific export or import, whether at the time of payment or during border clearance.
Source: English News
