• Market Watch

Business hails finance minister, taxman

• 9 Months Ago - 2024-03-15 00:00:00

The Namibian Chamber of Commerce and Industry (NCCI) has applauded government’s tax relief for corporates, describing it as “a significant move towards making Namibia a more attractive investment destination, fostering competitiveness and growth” in its economy.
Speaking at the Namibian Annual Budget Dialogue 2024 on Wednesday evening, NCCI president Bisey Uirab said finance minister Iipumbu Shiimi’s corporate and individual tax relief in his recently tabled budget “is indeed a step in the right direction”.
By increasing the threshold for income on individual income tax, Shiimi will inject N$646 million directly into the pockets of taxpayers this year. Adjusting all tax brackets for inflation creep in 2025/26 and 2026/27 will pump an additional N$712.9 million per year into private wallets.
The non-mining company tax rate will be reduced to 31% effective on 1 January 2024, with a further reduction to 30% taking effect at the beginning of next year. In 2026/27, the rate will drop to 28%.

Consultation
Uirab on Wednesday evening commended Shiimi, who attended the event as the keynote speaker, for the consultative approach taken in the budget planning process.
“It is encouraging that the views and concerns raised, and the recommendations made by NCCI in consultative sessions are and have been accommodated,” he said.
The NCCI started negotiating the tax relief programme in 2019, long before the onset of the Covid-19 pandemic, Uirab said.

NamRA
Uirab also thanked the Namibia Revenue Agency (NamRA) for the “remarkable work” it is is doing.
In his budget speech last month, Shiimi said tax collection at the end of January stood at N$72 billion, representing a collection rate of 90.6% over the first 10 months of the financial year. This is significantly higher than the corresponding historical average, the minister said.
As a result, the revenue estimates for2023/24 were adjusted upwards by N$2.5 billion to a total of N$81.1 billion.
“The significant revenue collection recorded so far is a milestone achievement worthy of applause. These funds can and will address the government’s developmental and social needs,” Uirab said Wednesday evening.

Partnership
The NCCI appreciates NamRA’s ongoing partnership with the chamber in ensuring tax compliance by all businesses, Uirab said.
“With NamRA, we have made strides in sensitising businesses on tax compliance and the importance of meeting obligations through initiatives like the ITAS training programme,” he elaborated.
Last year, the NCCI trained 108 SMEs, Uirab said.
The Tax Amnesty Programme, which will run until 30 October this year, has provided much-needed relief to businesses by waiving interest and penalties, he said.
“We applaud NamRA for this initiative, which has undoubtedly eased the financial burdens faced by many businesses,” Uirab said.

Compliance
Uirab urged the private sector be ever mindful of its responsibility as businesses to meet its tax obligations and thereby contribute to the development and sustainability of the Namibian nation.
“The NCCI reiterates its call on the business community to take note that while we reach out to government to be accommodative and to support the revival and growth of business, we too must also play our part in ensuring compliance with laws, rules and regulations.”

Localisation, jobs
The NCCI advocates for the utilisation of local capacity in development projects to stimulate money circulation within the Namibian economy.
“We urge businesses given the opportunity to be involved in such projects to be fair and reasonable in their pricing practices as a strategy to be competitive. Additionally, to adhere rigidly to ethical practices and professionalism when it comes to executing public sector tenders,” Uirab said.
He urged the private sector to embrace government’s measures to promote the gaining of work skills and internship opportunities among the youth.
Government last year initiated the "My First Job" programme, which includes the Youth Employment Tax Incentive and National Internship Programme.

‘Investment’
“Obviously, the tax incentive is most welcome, but business should look beyond the tax saving by viewing this programme as an investment in our nation’s young people. It opens a way to expose them to the real world of business and to help them put theory into practice,” Uirab said.
“In applauding the ‘My First Job’ initiative, which strives to address joblessness in Namibia at no cost to business, we commend the government for conceptualising and putting this unique programme in place,” he added.

* The Namibian Annual Budget Dialogue 2024 was co-hosted by the NCCI, Standard Bank Namibia, Namibia Media Holdings (NMH) and Market Watch under the theme, “A New Dawn: Stimulating Sustainable Local Economic Growth”. More on page 2 in today's Market Watch.