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Manufacturers Association against repeal of special income incentives

Manufacturers Association against repeal of special income incentives

The Namibian Manufacturers Association came out strongly against a bill which will phase out sector specific special income incentives granted to registered manufacturers by the end of the 2020/2021 tax year.

The bill, published through a government gazette on 22 June 2020 will repeal the tax incentives applicable to registered manufacturers and export processing zones. This is in fulfilment of the requirements of the European Union for the removal of Namibia from the list of non-cooperative jurisdictions as such incentives are regarded by the European Union as harmful preferential tax treatment.

CEO of the Manufacturers Association, Ronnie Varkevisser said by repealing these incentives, the already struggling manufacturing sector will be dealt a crippling blow.

He said the Association strongly condemns this decision and requests that government rather support the private sector, especially the manufacturing industry, in the form of incentives and thereby give them the necessary room to do business.

“To grow the economy and the manufacturing sector is a slow and painful process. It all starts with an enabling environment, which includes the necessary incentives to attract investments. However, if the political will is not there to create this “enabling environment”, then we are in great trouble,” Varkevisser added.


 

About The Author

Donald Matthys

Donald Matthys has been part of the media fraternity since 2015. He has been working at the Namibia Economist for the past three years mainly covering business, tourism and agriculture. Donald occasionally refers to himself as a theatre maker and has staged two theatre plays so far. Follow him on twitter at @zuleitmatthys

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