Namibia: VAT Estimated to Amplify By N$ 2.6 Billion

Finance minister Ericah Shafudah mentioned Namibia anticipates an improved efficiency in plenty of home income streams, highlighting that the nation’s heed added tax (VAT) is anticipated to upward push by N$2.6 billion.

While presenting her maiden charge range in parliament on Thursday, Shafudah indicated that the revised estimates for the 2024/25 financial year imply that earnings tax on members is projected to amplify by N$1.8 billion, whereas non-mining firm taxes are estimated to upward push by N$1.3 billion over the same period.

The minister moreover mentioned the authorities has postponed the utilisation of N$1.6 billion in dividends from Namibia Submit and Telecom Holdings, following the dissolution of the firm, until the 2025/26 financial year.

“In addition, roughly N$450 million from the sale of the remaining 9% shares in the Mobile Telecommunications Limited (MTC) have been shifted to the next year’s estimates,” she illustrious.

Further dividends to the tune of N$720 million are moreover anticipated from the Bank of Namibia.

No matter the pricetag range being supplied in a if truth be told not easy fiscal atmosphere, Shafudah mentioned the nation has skilled essential headwinds, which derive a wonderful deal constrained the on hand useful resource envelope in some unspecified time in the future of the 2025/26 financial year.

According to her, this has resulted in an estimated total income of N$92.6 billion for the 2025/26 financial year, a modest amplify of simplest 1.9% from the revised estimates of the previous year.

“The substantial strain on revenues emanated from a N$6.9 billion reduction in Southern African Customs Union (SACU) receipts, which are confirmed at N$21.1 billion,” the finance minister mentioned.

According to Shafudah, income train is projected to average 5.2% over the Medium-Timeframe Expenditure Framework (MTEF) period, breaching the N$100 billion ticket by the 2027/28 financial year.

“Furthermore, moderate increases in SACU revenues and several domestic revenue streams have been considered in line with the postulated growth context. Overall, we project revenue as a ratio of GDP to remain strong, averaging 32.0 per cent over the MTEF,” she illustrious.

The minister extra mentioned that whereas the authorities has made every effort to undertake a conservative methodology in its forecasts, desirous about seemingly plan back dangers, the income outlook stays discipline to well-known uncertainties, in particular within the international financial system.

“Nevertheless, we remain committed to managing government finances in a prudent manner that ensures long-term fiscal sustainability through achieving sustainable budget deficits and public debt,” added Shafudah.