National Council wants necessities exempted from VAT

Members of the National Council this week called for the complete exemption of value-added tax (VAT) on necessities like sanitary pads, nappies and children&#039;s clothes, among several other items.On Tuesday, during the resumption of a special session, Paulus Mbangu said minimum VAT - or none at all - should be charged on basic necessities."I applaud the ministry of finance for exempting items like maize meal and mahangu - among other things - from VAT, but the intervention is not enough. It would benefit the people more if items like [necessities] did not have any VAT, or a decreased VAT from 15% to 5%,” he suggested.“Food prices in our country are very high and cannot be afforded by the poor and unemployed citizens. The ministry should start regulating the food prices to make it accessible to all Namibians," Mbangu added.He said healthcare and educational supplies, toiletries and other basic household items should not be subject to VAT either.Increased income tax threshold "There is a need for public consultations when bill amendments are discussed before it is put into place. Go to the people and hear how they feel about certain bills before deciding anything. No one person can decide for the whole nation," Mbangu said.The council further questioned the Income Tax Amendment Bill and its exclusion of pensioners and small and medium enterprises (SMEs).According to him, the bill fails to address the staggering amounts of tax paid by the elderly and small business owners."There should be a certain increased threshold for these companies to make sure they are not exploited. The bill also abuses pensioners and I believe that pensions should be completely tax-free," he said.The council has suggested a threshold increase from N$100 000 to N$150 000, allowing small businesses and other individuals earning lower than N$150 000 annually to be spared from paying large sums in tax.Earlier this year, during the announcement of Namibia&#039;s 2024/2025 budget, the individual income tax threshold was increased from N$50 000 to N$100 000, effective March. The non-mining company tax rate decreased from 32% to 31% starting on 1 January, while the tax rate will be further reduced to 30% from 1 January 2025. Additionally, the non-mining company tax rate has been proposed to be reduced to 28% for the 2026/27 financial year.

National Council wants necessities exempted from VAT

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Namibian Sun 2025-06-16

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National Council wants necessities exempted from VAT

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Namibian Sun 2025-06-16

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