Browsing by Author "Benethelin, Zaaruka"

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    Revenue Productivity of Tax System in Namibia (1967-1997)
    (A.A.U, 1999-06) Benethelin, Zaaruka; Geda, Alemayehu (Dr)
    This study evaluates the revenue productivity of Namibian's overall tax system and of individual taxes on the basis of estimates of tax buoyancy and elasticities. The main aim of the paper is to raise government awareness to the need in strengthening the existing tax system as a way to generate more revenue to cut down the seemingly widening budget deficits. A study of this nature is needed to encourage the government to act quickly given the major changes which are taking place such as the renegotion of the Southern Africa Customs Union (SACU), which may result in reduction in revenue to the government. The analysis shows that the tax system in Namibia is highly elastic and also buoyant, as the coefficients, which are more than unity, show. For individual taxes, the high elasticity is found on international taxes such export duty on diamonds, followed by the customs receipts. The direct taxes such as taxes on income and profits are found to be inelastic. It is to be noted that the elasticity of the tax system to a great extent reflects the role played by external factors, which are beyond the control of the government. Namibia, therefore, has to strengthen domestic tax structure and reduce reliance on sources of revenue beyond its control, simultaneously reducing its expenditure.