Mid-Year Budget Review Speech

Financial Year 2017 / 18: Mid–Year Budget Review Speech

In his mid-year budget speech, Min. Schlettwein emphasised a general improvement in State finances, with an improved balance of payments and the benefits of tighter fiscal controls becoming apparent.

The Minister said that conduct of fiscal policy must be supported by effective domestic resources and increasing tax capacity. Tax policy and administration reforms will continue. The intention is not to increase general tax rates, however, but to bring all potential taxpayers into the net and to achieve full compliance.

The Namibia Revenue Agency Bill was passed in Parliament last week, which is considered an important reform to increase efficiency. In our opinion, the creation of another administrative structure may not necessarily simplify tax administration. However, if the Bill has the effect of improving communication between taxpayers and Inland Revenue and improves tax administration, it is to be welcomed.

At the next session of Parliament, the Minister intends to table a proposal for the introduction of the Presumptive Tax, targeted at the informal / micro economic sector, and will propose to eliminate certain categories of tax exemptions which are being abused, according to the Minister.