Staff Writer
The ministry of finance is reviewing the value-added tax (VAT) zero-rating on sugar consumption, with the government citing the health effects of sugar as a reason to reconsider the measure.
Finance minister, Ericah Shafudah said during the presentation of the midterm budget review that the zero-rating was introduced to provide relief to consumers, but that it was reviewing the policy while promoting healthy living.
“The zero rating was introduced to provide some relief to consumers; however, the health effects of sugar consumption are well known, and we join the rest of the world in promoting healthy living,” she said.
In a separate measure aimed at reducing domestic food production costs, the government is considering introducing VAT zero-rating on imported agricultural inputs and equipment.
Agriculture is a key sector of Namibia’s economy, and the proposed measure is intended to lower the cost of producing food locally.
The government is also reviewing export levy levels, with consultations involving stakeholders still underway.
Namibia’s natural resources regime is based on value, according to the statement.
Meanwhile, Namibia continues to participate in the Southern African Customs Union’s (SACU) review of anti-dumping duties on selected products.
The process aims to promote fair competition and protect regional industries.
Photo: Contributed
#WindhoekObserver
