The Namibia Revenue Agency (NamRA) anticipates a N$6 billion decline in tax revenue from the diamond sector this year due to weak global prices.
NamRA Commissioner Sam Shivute attributed the shortfall to the struggling diamond market but highlighted that increased tax collections from the mining, fishing, and tourism sectors had helped mitigate the impact.
“We have collected N$83 billion for the 2024/2025 financial year. Despite losing N$6 billion in diamond tax revenue, we are still on track to surpass our overall revenue target by March 2025,” Shivute stated.
He credited this resilience to NamRA’s strict enforcement of tax laws, warning that no entity is exempt from scrutiny.
“We will implement tax laws without fear or favor. No one is untouchable. If we haven’t audited you yet, it’s only a matter of time. The fact that we haven’t reached you doesn’t mean we aren’t coming,” he said.
NamRA has strengthened its auditing and transfer pricing investigations in collaboration with the Africa Tax Administration Forum and other partners.
This has led to increased tax compliance, particularly from multinational and local companies that had reported losses for decades.
“Some companies that declared losses for over 30 years are now suddenly paying between N$200 million and N$300 million annually. This is a direct result of our administrative efforts to ensure fair tax contributions,” Shivute said.
While compliance has improved in the mining and tourism sectors, Shivute noted that some players in the mining and fishing industries continue to evade tax obligations.
“The era of tax evasion and non-compliance is coming to an end—great news for Namibia,” he added.
Namibia’s total diamond production dropped by 4% in 2024, falling to 2.23 million carats from 2.33 million carats in 2023.
The average price per carat declined from US$515 to US$426, while unit costs rose from US$246 to US$295. The global diamond industry continues to struggle due to weaker demand in China and competition from lab-grown diamonds.
