PwC Namibia’s take on the budget
Chantell Husselmann – Finance minister Iipumbu Shiimi 2022/23 budget theme of “Reimaging, a better future for the youth” places great emphasis on the importance of investing in the younger generations to equip them to become self-sustainable and responsible citizens.
Shiimi delivered the annual budget statement for the 2022/23 fiscal year in parliament on Thursday.
In his speech, the minister indicated the increase in duties levied on certain excisable goods. Beer, for example, will increase with 11c per 340ml can and an additional N$6.77 will be levied on a 23g cigar.
On the tax front, the minister made the following remarks regarding tax policy and administration reforms:
· The reduction of the non-mining corporate tax rate is still under investigation but is not expected to take effect within the upcoming fiscal year.
? An increase in the threshold of tax allowable deductions to pension funds, retirement funds and study policies to N$150 000 is included in the Income Tax Amendment Bill, which is still undergoing public consultations.
? Further included in the Income Tax Amendment Bill is the requirement for taxpayers to provide proof of actual tax withheld on payments for services to foreign-service providers.
? Zero rating of sanitary products is included in the current VAT Amendment Bill which is still undergoing public consultations.
? The tax relief programme ended 31 January 2022, but a modified electronic filing tax relief programme will be introduced for a further 12 months to offer much-needed relief to taxpayers on a portion of their outstanding penalties and interest.
? The Namibia Revenue Agency (NamRA) is showing positive progress and placing high priority on assisting taxpayers to improve tax compliance.
We are waiting expectantly for the above amendments to be gazetted and to unpack the economic impact on all taxpayers (both corporate and individuals). No indication has been given as to when this can be expected, other than that the government is focusing on fast tracking the proposed amendments in an effort to support economic growth.
As part of Pillar 2 of the Harambee Prosperity Plan II (HPP II), the Namibian government has introduced the Economic Diversification and Growth Strategy. Through this strategy, the Namibian Investment Promotion and Development Board (NIPDB) hosted several investor engagements abroad and at the Dubai Expo, sparking potential foreign investor interest in Namibia.
With various economic reforms in the pipeline, it is safe to say that exciting opportunities lie ahead to support the growth of the Namibian economy as we strive towards a better future for all Namibians.
* Chantell Husselmann is the country senior partner and tax leader at PwC Namibia.
Shiimi delivered the annual budget statement for the 2022/23 fiscal year in parliament on Thursday.
In his speech, the minister indicated the increase in duties levied on certain excisable goods. Beer, for example, will increase with 11c per 340ml can and an additional N$6.77 will be levied on a 23g cigar.
On the tax front, the minister made the following remarks regarding tax policy and administration reforms:
· The reduction of the non-mining corporate tax rate is still under investigation but is not expected to take effect within the upcoming fiscal year.
? An increase in the threshold of tax allowable deductions to pension funds, retirement funds and study policies to N$150 000 is included in the Income Tax Amendment Bill, which is still undergoing public consultations.
? Further included in the Income Tax Amendment Bill is the requirement for taxpayers to provide proof of actual tax withheld on payments for services to foreign-service providers.
? Zero rating of sanitary products is included in the current VAT Amendment Bill which is still undergoing public consultations.
? The tax relief programme ended 31 January 2022, but a modified electronic filing tax relief programme will be introduced for a further 12 months to offer much-needed relief to taxpayers on a portion of their outstanding penalties and interest.
? The Namibia Revenue Agency (NamRA) is showing positive progress and placing high priority on assisting taxpayers to improve tax compliance.
We are waiting expectantly for the above amendments to be gazetted and to unpack the economic impact on all taxpayers (both corporate and individuals). No indication has been given as to when this can be expected, other than that the government is focusing on fast tracking the proposed amendments in an effort to support economic growth.
As part of Pillar 2 of the Harambee Prosperity Plan II (HPP II), the Namibian government has introduced the Economic Diversification and Growth Strategy. Through this strategy, the Namibian Investment Promotion and Development Board (NIPDB) hosted several investor engagements abroad and at the Dubai Expo, sparking potential foreign investor interest in Namibia.
With various economic reforms in the pipeline, it is safe to say that exciting opportunities lie ahead to support the growth of the Namibian economy as we strive towards a better future for all Namibians.
* Chantell Husselmann is the country senior partner and tax leader at PwC Namibia.
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