Namibian finance minister cuts income tax
Posted Wednesday, February 27 2013 at 04:37
Namibia’s finance minister Tuesday gave corporate and individual taxpayers some relief by lowering taxes while announcing government expenditure increases of nearly 20 per cent.
"The non-mining company tax will be reduced by one per cent from 34 to 33 per cent this April and another one per cent in 2014 to 32 per cent," finance minister Saara Kuugongelwa-Amadhila said while tabling the budget in parliament.
Income tax for (non-diamond) mining companies remains 37 per cent and for diamond mining companies 55 per cent.
Personal income tax will drop considerably from 35 per cent to 25 per cent for individuals earning up to 300,000 Namibia dollars ($34,000) annually.
The finance minister increased the taxable income threshold and reduced the rate in all brackets.
"To relieve the general tax burden on individuals and to assist our citizens in affording the basic amenities of life, income tax brackets are changed," the minister told parliament.
The southern African country's 140,000 pensioners will see their stipend rise from 500 to 600 Namibia dollars.
Total government spending for the 2013-14 financial year as from April increases 19 per cent to around $5.4 billion.
"Government intends to finance the deficit through a combination of drawdown on accumulated cash reserves and borrowing mainly from domestic markets," the minister announced.
"Namibia’s economic growth is projected at 4,3 per cent in 2013," minister Kuugongelwa-Amadhila said.