Rédaction Africa Links 24 with Shania Lazarus
Published on 2024-02-28 13:33:25
Minister of Finance and Public Enterprises, Iipumbu Shiimi, presented Namibia’s largest budget to date, totaling N$100 billion. This significant budget comes in light of a robust revenue performance for the country. Despite this, Shiimi announced that there will be no new tax policy proposals included in this budget.
“We maintained a policy stance to not consider new tax policy proposals,” Shiimi stated. “This budget focuses on specific tax policy proposals aimed at providing relief to taxpayers and boosting domestic demand.”
One of the key tax reforms outlined in the budget is a substantial increase in the income tax threshold for individuals, rising from N$50,000 to N$100,000. This adjustment is expected to inject N$646 million directly into the pockets of taxpayers.
In terms of corporate income tax, rates are set to undergo a phased reduction, starting at 31% in January and gradually decreasing to 28% by the 2026/27 financial year. Shiimi highlighted that these reforms aim to enhance revenue by improving corporate tax compliance.
Furthermore, amendments to tax laws will eliminate non-resident shareholder tax exemptions for foreign insurance company shareholders. The budget allocates N$44.3 billion to the social sector, marking a 12% increase from the previous year. Shiimi emphasized the importance of investing in social sectors for a developing economy like Namibia.
The economic and infrastructure sector received N$20.9 billion in funding, with provisions for supporting transportation, agriculture, and small and medium enterprises. Shiimi described this budget as a comprehensive strategy to stimulate economic growth, address social challenges, and ensure fiscal sustainability.
In addition to the budget details, a call-to-action was included in the form of a subscription offer from The Namibian for N$85 a month. The message encouraged readers to stay informed with credible journalism and support democracy by investing in journalism.
Overall, Minister Shiimi’s presentation of the N$100 billion budget demonstrated a focused approach on tax reforms, social sector investments, and economic growth strategies. The budget reflects the government’s commitment to addressing key challenges and fostering sustainable development in Namibia.
Read the original article on The Namibian
