Responding to a question from the DTAs Mike Venaani on the impact of the reported deficit in Sacu, Tweya said Government has been considering ways to reduce Namibias dependence on revenue from the customs union pool.
This includes broadening the domestic revenue base through strengthening tax collection and exploring new sources of taxes, he told Parliament.
Tweya confirmed the deficit in the Sacu pool, but refused to elaborate.
Although we have received information on the size of the overall deficit on the pool, the way it will be financed is still to be agreed among member states.
Therefore, until this negotiation is concluded, we cannot pronounce ourselves on how this will impact our annual budget, he said.
Tweya added that a buffer amount was included in the Medium Term Expenditure Framework (MTEF) to allow for the impact of the economic crisis on state coffers. However, he didnt say how big the buffer is.
Sacu Executive Secretary Tswelopele Moremi recently confirmed the deficit, attributing it to the global economic crisis.
Namibia relies on Sacu for about 40 per cent of its yearly income.
Finance Minister Saara Kuugongelwa-Amadhila is bargaining on N$9,3 billion from the Sacu revenue pool for the current financial year.
The customs union, the oldest in the world, consists of Namibia, Botswana, Swaziland, Lesotho and South Africa.
The Namibian
Post published in: Zimbabwe News