The finance ministry’s Inland Revenue Department says it will no longer accept as means of payment cheques that are not bank guaranteed.
The new directive takes effect from next month December 1.
For those not having bank guaranteed cheques, Inland Revenue is advising the use of online banking to do electronic payment transfers and the use of point of sale devices, also called speed points, as a secure alternative payment method.
The department says the speed points “are available at all offices country-wide with the exception of satellite offices”.
“Should any cheque that is not bank guaranteed be submitted, mailed or deposited in our box after the target date of 01 December, such cheque will be rejected and the respective tax account will not be credited,” the permanent secretary for the Ministry of Finance Erica Shafudah said in a statement
Even though the cash payment would remain an acceptable means of payment, Inland Revenue says it would “encourage taxpayers not to carry large stacks of cash due to safety reasons”.
“In terms of Treasury Instruction GB 0101, bank guaranteed cheques may be considered as cash when a payment is made to the State. The Inland Revenue Department will henceforth only accept cheques that are bank guaranteed by commercial banks. Bank guaranteed cheques provide assurance that funds stated on the issued cheque will remain available for the intended purpose, thus safeguarding the interests of both parties,” Shafudah said.
Inland Revenue also says that even with the bank guaranteed cheques, such cheques must be in line with the guidelines by the Payment Association of Namibia that restrict cheque amounts to N$100 000 from February 1 2016.
“It is also anticipated that cheques will be completely phased out on 31 December 2017. In cognisance of this public notice, Inland Revenue would like to gradually prepare for this imminent change,” Shafudah said.
Shafudah says electronic funds transfer and direct deposits can be made into the general revenue account, account number 165001, Branch 980172, in respect of all taxes administered by Inland Revenue.