AU Forum: MSMEs lament taxes, treatment

Exhibiting entrepreneurs made to pay for work visas
While meant to be a platform for networking and growth, the AU MSME Forum left a bitter taste in some delegates' mouths.
Tuyeimo Haidula
The Namibia Investment Promotion and Development Board (NIPBD) said it struck a deal with the Namibia Revenue Agency (NamRA) to exempt the owners of micro, small and medium enterprises (MSMEs) who attended the African Union MSME Forum from paying customs duties on sample products.

However, products sold during the event were still subject to Namibian tax laws. This was confirmed by senior manager of marketing, branding and communications, Catherine Shipushu.

This after entrepreneurs attending the event, which was held from 9 to 13 September in Windhoek, complained bitterly about taxes, that they were made to pay for work visas and that they were treated ‘unfairly’.



Unhappy

Business owners from beyond Namibia’s borders complained that they had to pay US$65 (about N$1 140) for work visas to attend the event, lamenting that they did not consider exhibition at the forum as work, but rather a networking opportunity.

Mechi Amaah, the CEO and founder of Black’n Natural Cosmetics from Cameroon, said she is “very angry” that they were made to pay for work visas. “We are coming to sample. The objective of the African Union [AU] is to harness youth trade in Africa... The other delegates who are not exhibiting paid US$32 [about N$560] for their visas. They explained that the fees are for staff. I am not staff because I don’t work for Namibia; I am here to sample products and make connections,” she fumed.

She added that they were not informed that, when they left, they would be required to pay taxes on the products they sold.

“I have the impression that Namibia is not encouraging imports. We are here under the AU and they should have waived some of these [fees].

She added that her overall experience at the forum was that they were treated unfairly in comparison to other delegates who did not exhibit.

Malawian national Precious Di Phiri, founder of Awawo Africa, said they had to pay taxes to bring samples into the country. “Being a small business, we do not have lots of money or trade finance. The taxes are barriers and put a toll on us.”

He urged the Namibian government to work with the AU through the Africa Continental Free Trade Area Agreement (AfCFTA) and consider waiving the taxes next time they host an event of this nature.



The law is the law

Although the MSME forum was an opportunity for Namibia to demonstrate how to implement AfCFTA, the country has not yet gazetted its trade tariffs under the agreement.

Shipushu said in preparation for the event, NIPDB engaged NamRA to discuss potential tax exemptions for the participants, after which a detailed list of all products to be exhibited was submitted to NamRA to assess tax applicability and any restrictions.

She said NamRA then granted tax exemptions for all product samples intended solely for exhibition purposes.

She further explained that while MSMEs were allowed to exhibit their sample products without paying customs duties, it is important to clarify that any products sold during the event are still subject to Namibian tax laws. “These laws are enforced through NamRA to ensure compliance with our national regulations. It is not lost on us that the AU MSME Forum was also aimed at fostering linkages and promoting continental integration, but this cannot be achieved at the expense of the country’s laws,” she said.



More than sales

Home affairs ministry executive director Etienne Maritz explained that the scope of doing business extends beyond the sale of tangible goods.

It also encompasses various aspects of marketing, including strategic promotion, brand development and market expansion, he said.

He noted that the short-term employment permit (work visa) is designed for those coming to Namibia to engage in business activities without long-term employment. This visa can be granted for periods ranging from one day to several months, but typically does not exceed six months.

“A work visa is generally used by individuals who are facilitating at conferences, business meetings and trade fairs, and not by those who are simply attending or observing,” Maritz said.

Bulelwa Nkosi, an SME expert in the economic development, trade, tourism, industry and minerals department of the AU Commission, referred all questions to NIPBD. The forum had close to 300 people in attendance, of which 36 were the owners of Namibian business entities.

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Namibian Sun 2024-09-23

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