Namibians to spend less as Personal Income Tax increases
April 9, 2018, 5:52pm
Ordinary Namibians may find themselves spending less as taxes deducted from their personal income have been increased by over 20% in the 2018/19 trading year, Institute for Public Policy Research’s Cheryl Emvula observes.
Treasury has revised collections for personal income tax up N$2 billion to N$13 billion since the November mid-term budget of 2017, Emvula said.
“This increase has been justified by a more efficient tax collection process and foremost economic recovery over coming years. These collections are expected to contribute N$2.2 billion more than was received in the prior financial year,” said Emvula.
He however regards this as ambitious “Given the current state of the local economy.”
“With rising unemployment and below inflation wage adjustments planned for the civil service and many others, the only plausible explanation for the over 20% increase in personal income tax in 2018/19 when compared to 2017/18, is an adjustment in the base, implying that the 2017/18 figures may be understated,’ he said.
Meanwhile, tax exerted on ordinary Namibians has been on a downward trajectory compared to prior estimates over the past few years.