Government increases tax threshold to N$100 000 for individual taxpayers

Staff Reporter

ALL individual taxpayers will be exempted from paying tax on the first N$100,000 of their income as of 01 March 2024, as the threshold for Income Tax on Individuals will increase from N$50,000 to N$100,000 to provide relief to low-income earners.

The announcement was made by Iipumbu Shiimi, the Minister of Finance and Public Enterprises, during his presentation of the 2024/25 Financial Year (FY2024/25). He explained that raising the threshold for Income Tax on Individuals will inject N$646.0 million directly into the pockets of taxpayers.

“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. Further, we have considered specific proposals to enhance the competitiveness of our tax system to attract investments and foster private sector development,” Shiimi explained.

The finance minister added that provisions have been made in the two outer years of the Medium-Term Expenditure Frameworks (MTEF) to adjust all tax brackets for inflation creep. In this regard, he added, a total of N$712.9 million per annum in direct relief to taxpayers has been provided for.

Shiimi further announced that the Namibia Revenue Agency (NamRA) will continue with the final leg of the Tax Amnesty Program, wherein interest and penalties will be fully written off if taxpayers settle the outstanding capital by October 30, 2024.

“I would like to emphasise to all concerned taxpayers that this is the final extension of this program. It is important for all concerned taxpayers to participate before the due date because we shall not lender a sympathetic ear to anyone afterwards. The total capital of tax arrears stood at N$17.3 billion at the end of January 2024,” Shiiimi emphasised.

The minister also disclosed that, in line with Article 21 of the SACU Agreement, several excise duties on the consumption of alcohol and tobacco came into effect on February 22, 2024. He outlined that a 340ml beer can saw a rise of 10 cents, a 750ml bottle of wine experienced an increase of 18 cents, a 750ml bottle of spirits went up by N$3.90, 23 grams of cigars saw a hike of N$5.47, and the duty on a pack of 20 cigarettes rose by 98 cents.