Government tax relief takes effect

WINDHOEK DENVER ISAACS

Reduced tax rates announced by Finance Minister Saara Kuugongelwa-Amadhila in February took effect on Friday.
The new tax threshold and rates were published in the Government Gazette on Friday after being approved by parliament, and are expected to be backdated to March 1.
The new income citizens must earn before tax becomes payable is N$50 000 a year, up from the previous N$40 000 per year.
The new structure also sees the lowest rate of tax payable reduced to 18%, from the previous 27%.
The change means that citizens earning N$50 000 a year would have about N$225 a month more disposable income than last year.
The reduced tax rate is also good news for those in the lowest tax bracket, with those at the N$100 000 earnings level now left with N$683 a month more to spend.
When she announced the new rates, Kuugongelwa-Amadhila said it was the government's effort to help citizens cope more easily with basic expenses such as water, electricity and basic food.
Also taking effect on Friday were new transfer duty rates announced by the finance minister, which are effective for transactions concluded on or after June 1.
All property to the value of N$600 000 is now exempted from transfer and stamp duty, while properties with a value of between N$600 001 and N$1 million will require transfer duty of 1% of the property value, and N$10 stamp duty for every N$1 000 of their value.