BURS struggles to monitor taxation of car importers
Isaac Pinielo | Wednesday June 10, 2015 18:04
Permanent secretary in the Ministry of Finance and development Planning, Solomon Sekwakwa told the Public Accounts Committee (PAC) yesterday that despite continuous raids on imported car dealers, there are still instances where BURS laws are flouted.
“We do check and audit these dealers but due to lack of capacity on our part, some people end up cheating,” he said.
He added that the BURS is currently not in a position to spot every wrongdoing, but said it is in the process of strengthening its capacity when it comes to taxation.
Sekwakwa also explained that they usually impose high charges on those that are found to have flouted BURS regulations so as to send a message for them not to repeat the offences.
In 2013, the BURS plugged a loophole used to dodge a ban on the importation of used vehicles to Namibia by flagging all vehicles imported to Botswana for six months before they can be de-registered or exported.
It was reported that the move was meant to prevent those who intended to or have been evading Namibia’s enforcement of a Southern African Customs Union (SACU) ban on the importation of vehicles, which are more than five-years-old.
To evade the prohibition, individuals and companies have been importing and registering vehicles over the age limit in Botswana and then taking them to Namibia immediately.
Before Botswana enforced the SACU ban, it had become a favourite route for Namibians with an appetite for cheaper imported cars over the age limit.