Rédaction Africa Links 24 with Tiri Masawi
Published on 2024-03-01 15:00:00
Business representatives have expressed their approval of the decision made by finance and public enterprises minister Iipumbu Shiimi to exempt small to medium scale enterprises (SMEs) making less than N$1 million annually from paying value-added tax (VAT). This move is set to benefit 23,000 SMEs, as mentioned by Shiimi in his budget speech on Wednesday.
Bisey /Uirab, the president of the Namibia Chamber of Commerce and Industry (NCCI), welcomed this decision, stating that it will enable local businesses to reinvest their earnings, thus fostering growth and employment opportunities. He emphasized the importance of SME businesses ensuring their tax compliance and commended the government for creating room for growth and job creation.
Shiimi also announced the increase of the VAT payment threshold for businesses from N$500,000 to N$1 million, along with unveiling a N$101 billion budget, the largest expenditure plan in the country since independence. Another measure he introduced was the elevation of the low pay-as-you-earn threshold for individuals from N$50,000 to N$100,000, which has been praised for enhancing the purchasing power of many Namibians.
The decision to raise the VAT threshold has been lauded for freeing up SMEs from VAT administration, allowing them to focus on their core activities and promoting competition with lower costs. Nangula Uaandja, the chief executive of the Namibia Investment Promotion and Development Board, noted that the budget aims to create a conducive environment for small and medium enterprises to thrive and contribute to employment opportunities.
Peter Amadhila, the vice president of the Namibia Local Business Association, called for the government’s attention to generating revenue from the country’s natural resources, which are currently being exploited by foreigners without benefiting the local population. He stressed the need for policy reforms to address economic injustices and ensure that natural resources benefit the country and its people.
Economist Angelique Bock, speaking on Desert Radio, commended Shiimi’s decision to support small businesses, stating that it will provide them with the necessary capital to expand and seize growth opportunities. She highlighted the benefits that local businesses will receive from this decision in terms of growth, expansion, and competitiveness.
In conclusion, the exemption of SMEs making less than N$1 million annually from paying VAT has been met with approval from business representatives, who believe it will stimulate growth, job creation, and economic development in Namibia. The measures introduced in the budget by Minister Shiimi have been seen as vital steps towards creating a favorable environment for small businesses to thrive and contribute to the country’s economic progress.
Read the original article on The Namibian
