Business chamber positive on fiscal direction of interim budget
The business chamber responded very positively on Thursday to finance minister, Ipumbu Shiimi’s interim budget released on Tuesday. Saying that the ministry has not always heeded advice from the chamber in the past, the Chief Executive of the Namibia Chamber of Commerce and Industry, Charity Mwiya praised the minister for his insight to embrace private sector recommendations.
“This is a good start,” said Mwiya while expressing the chamber’s appreciation of the announced reduction in corporate taxes.
“In the Medium-Term Budget Review presented by Shiimi in parliament on Tuesday the minister announced that the non-mining company tax rate will be reduced by two percentage points, one percent annually over the two outer years of the current MTEF.”
“Although it remains higher in comparison to neighbouring countries, effectively the tax rate reduces to 31% in FY2024/25 and to 30% in FY2025/26.”
“But as the NCCI recommended to government previously and repeated earlier this year, further reductions are required to achieve taxation parity with other countries in the SADC economic bloc,” Mwiya emphasised.
Mwiya also commended the minister for committing to increase the threshold for Income Tax on Individuals from the current N$50,000 per annum to N$100,000.
Although not all recommendations made to government to create a pro-growth environment have been addressed, according to the chamber, the minister’s announcements are positive and welcomed by a beleaguered private sector where many businesses are still struggling to recover following the past two disruptive years.
Concerning other suggestions to improve the local business environment, Mwiya said the ministry should consider a lower tax rate for SME’s with an annual turnover of N$2 million or less.
