Niël Terblanché
In a significant move that promises financial relief for Namibian citizens and businesses, the government is nearing the implementation of the tax reduction and refund measures announced during the tabling of the 2024–2025 National Budget.
These measures are currently with the legal drafters and are expected to become law by October.
During his presentation of the National Budget in Parliament at the end of February, the Minister of Finance and Public Enterprises, Iipumbu Shiimi, revealed that salary earners would soon pay less tax.
During a discussion at the Government Information Centre on Monday, Shiimi provided further updates, stressing that tax refunds would be backdated to March 2024.
He emphasised the importance of re-evaluating tax rules to address the needs of income earners amidst rising inflation, which prompted the government to raise the tax threshold.
During Monday’s discussion, Shiimi explained that a detailed logistical process must be completed before the law takes effect, setting a timeline for the amendments to the relevant tax laws to be finalised by October.
In a bid to stimulate job creation, corporate taxes have been reduced, enabling companies to reinvest in the economy.
Additionally, to support affordable housing, the property transfer tax will be waived for those purchasing homes valued at less than N$1 million.
Small and medium enterprises (SMEs) will also benefit from significant tax relief, with their tax rate being slashed from 32 percent to 20 percent.
The minister assured that once the amended tax laws are promulgated and subsequently published in the government gazette, the tax relief and back payments would come into effect.
Shiimi also said that the current structure of the finance ministry is under review, as it is no longer fit for purpose. This review aims to ensure that various functions within the ministry have a sufficient and well-trained workforce to deliver services efficiently.
He noted challenges such as capacity shortages, manual procedures, and workforce imbalances among different ministerial functions, all of which are being addressed.
According to Shiimi, continuous staff training and a shift towards digitization are among the proposed solutions to these challenges.
He added that the tax reforms and restructuring of the finance ministry represent a proactive approach by the government to provide immediate financial relief, ensure sustainable economic growth, and improve public service delivery.
