Finance Minister tables Income Tax Amendment Bill

The Minister of Finance and Public Enterprises, Iipumbu Shiimi has introduced the Income Tax Amendment Act of 2024 in the National Assembly. The Act provides tax relief to individuals and non-mining companies by amending Schedule 4 of the Income Tax Act of 1981, which addresses tax rates. Shiimi had announced in the February 2024 national budget that all taxpayers would receive relief by adjusting the tax tables by N$50,000, exempting the first N$100,000 of income.

The minister, the Namibia Press Agency reports, said that the non-mining tax rate will be reduced from 31 per cent in 2024 to 30 per cent the following year to improve competitiveness against other regional economies.
“We are doing the amendments with the hope that we are going to inject additional money into the pockets of individuals and companies. But again, the aim is really to kick-start more economic activities so that we can create employment,” according to Shiimi.

During the session in the National Assembly on Tuesday, Shiimi announced that the tax adjustment would result in an injection of approximately N$ 646 million into the pockets of taxpayers.
On average, the adjustment will result in N$ 12 000 tax relief per person annually, he added.
However, in order to benefit from the tax relief, the minister urged individuals to ensure that they have filed their tax returns before the deadline, which was 30 June 2024.
Shiimi also urged companies that will benefit from tax reduction to invest in their business growth.

Cirrus Capital economist Robert McGregor reacts to the development.