Budget provides tax relief to low-income earners: Shiimi

RUNDU: Minister of Finance and Public Enterprises Iipumbu Shiimi said that over the preceding Medium Term Expenditure Framework (MTEF), the ministry maintained a policy stance to not consider new tax policy proposals.

Shiimi said this when he delivered the Financial Year 2024/25 (FY2024/25) Budget Statement in the National Assembly in Windhoek on Wednesday.

He said the new tax policy proposals not to be considered are those with the potential to stifle economic recovery and compromise the emerging growth prospects.

‘Broadly, we still maintain the same view, and as such this budget continues specific tax policy proposals aimed at providing some relief to taxpayers with the aim to boost domestic demand and broaden the tax base to improve revenue mobilisation,’ he said.

The minister said the FY2024/25 budget has made provision to provide tax relief to low-income earners.

‘In this regard, we will increase the threshold for Income Tax on Individuals from the current N.dollars 50 000 to N.dollars 100 000,’ he

This action, he explained, will result in an injection of N.dollars 646.0 million directly into the pockets of taxpayers.

Shiimi said effectively, all individual taxpayers will be exempted from paying tax on the first N.dollars 100 000 of their income as from 01 March 2024.

The revised tax tables will be published accordingly.

‘Furthermore, we have made provisions in the two outer years of the MTEF to adjust all tax brackets for inflation creep. In this regard, a total of N.dollars 712.9 million per annum in direct relief to taxpayers has been provided for,’ Shiimi said.

Source: The Namibia Press Agency