Govt considers tax relief to low-income earners

     
 
  

Story by Staff Reporter

Mr. Ipumbu Shiimi , Minister of Finance  and Public Enterprises ,

THE Namibian government has considered to give a free hand to all taxpayers who earn their monthly income below one hundred thousand Namibia dollars (N$100,000) not to pay tax to the State.

This was announced by the Minister of Finance  and Public Enterprises , Mr. Ipumbu Shiimi during his National Budget Speech (Appropriation Bill) for the Financial Year 2024/ 2025 in parliament on Wednesday.

Finance Minister Shiimi explained  the importance of the tax reform policy that “we have considered specific proposals to enhance the competitiveness of our tax system to attract investments and foster private sector development. In this context, I am happy to announce the following resolutions-: as confirmed previously, the Y2024/25 budget has made provision to provide tax relief to low-income earners. In this regard, we will increase the threshold for Income Tax on Individuals from the current $50,000 to N$100,000. This action will result in an injection of N$646 million directly into the pockets of taxpayers. Effectively, all individual taxpayers will be exempted from paying tax on the first N$100,000 of their income as from 01 March 2024. In this respect, the revised tax tables will be published accordingly;”

He however added that this was made in the previous two outer years of the

MTEF to adjust all tax brackets for inflation creep. “ In this regard, a total of N$712.9 million per annum in direct relief to taxpayers has been provided for”

However, Namibia Revenue Agency(NamRA) has been mandated to extend its  Tax Amnesty Program in writing off all interest and penalties if taxpayers pay their outstanding amount by October 30, 2024.

“I would like to emphasise to all concerned taxpayers that this is the final extension of this program.

It is important for all concerned taxpayers to participate before the due date because we shall not lender a sympathetic ear to anyone afterwards. The total capital of tax arrears stood at N$17.3 billion at the end of January 2024; and

Lastly, in conforming with Article 21 of the SACU Agreement, the following excise duties on the consumption of alcohol and tobacco took effect on 22 February 2024:

o a 340 ml can of beer increases by 10c; o a 750 ml bottle of wine goes up by 18c;

o a 750 ml bottle of spirits will increase by N$3.90; o a 23 gram cigar goes up by N$5.47; and o a pack of 20 cigarettes, the duty rises by 98 cents.”


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