23 Feb 2014 10:40am
WINDHOEK, 21 FEB (NAMPA) PricewaterhouseCoopers (PWC) Namibia Tax Partner Stefan Hugo has applauded the Finance minister for a consistent budget allocation.
Speaking at a breakfast meeting on the 2014/15 National Budget organised by PWC, Standard Bank Namibia, Liberty and Stanlib here on Thursday, Hugo said the National Budget had no major surprises.
Minister of Finance Saara Kuugongelwa-Amadhila tabled a N.dollars 60,28 billion national expenditure budget for the 2014/15 financial year in the National Assembly on Wednesday.
As expected, considering the minister's generosity last year, no change in the tax brackets for individuals was announced, Hugo said.
He further welcomed the reduction in the corporate tax rate from 33 per cent to 32 per cent, considering the additional tax cost of the Vocational and Education Training (VET) Levy which business will start paying this year.
Hugo also expressed happiness with tax rates for mining companies remaining unchanged at 37.5 per cent and 55 per cent.
However, he noted that the proposed taxes on commodity exports like minerals, fish and meat will increase the tax burden on these industries.
He said the launch of the task team on the establishment of a semi-autonomous revenue agency indicates a strategic goal.
Kuugongelwa-Amadhila, in January 2014, introduced nine members of the task team for the establishment of a semi-autonomous revenue agency which will assist with tax administration in Namibia.
The team will be advising on the transitional arrangements from the current structure to the new revenue agency.
The key reform areas encompass the modernisation of the tax system through the introduction of an integrated tax administration system and broadening and deepening of the tax system.