Govt on zula spree

The dire state of the government's coffers has been revealed by ongoing consultations about a 2% one-off contribution from people's salaries.

23 May 2019 | Economics

The government will soon ask public office bearers and civil servants to pay a voluntary tax that will be used to fund drought relief and support entrepreneurial activities.

The executive director in the Office of the Prime Minister, I-Ben Nashindi, has written a letter requesting a meeting with unionists to explain the request.

“As you may be aware, the country is faced with a number of challenges, among them the drought situation which resulted in declaration of a state of emergency by the president, thus requiring all stakeholders to play an active role in coming up with [a] solution to this challenge,” Nashindi wrote.

The National Union of Namibian Workers (NUNW) and the Namibia National Teachers Union (Nantu) were encouraged to invite their affiliate unions to discuss the proposed tax.

“Since this proposal is affecting all Namibians, the National Union of Namibian Workers is invited to bring other affiliate unions to this meeting to discuss the proposal which has been supported by cabinet for a one-off 2% voluntary contribution from the monthly basic salaries of all Namibians, including public office bearers,” Nashindi said.





He assured the unions that the money would be used for the intended purposes.

“The proceeds of this initiative will be ring-fenced and directed to address the plight facing our people due to the drought, and also to fund youth skills and entrepreneurship programmes,” he said.

Finance minister Calle Schlettwein was unavailable for comment yesterday.

Office of the Prime Minister spokesperson Saima Shaanika confirmed the letter, saying that it was an internal memo sent to ministerial staff.

“President Hage Geingob has spoken about a 2% voluntary contribution in his State of the Nation address and that should be able to give you more clarity,” she said.

Unionist Job Muniaro said he would comment after the planned meeting.

“I am going to listen to what the prime minister is going to say regarding the voluntary deductions. We have a meeting [scheduled] for this Friday where we will ask the minister what the new tax will contain,” he said briefly.

Academic Dr Omo Kakujaha-Matundu said it would be better to not tax citizens at all.

“Economics teaches us that it is better to leave the money in consumers' pockets in tough economic times. Consumers are much more efficient at spending funds in an economic downturn. The best advice is to leave the money in consumers' pockets,” he said.

STAFF REPORTER

Similar News

 

Mayana community demonstrates over land

1 day - 03 July 2020 | Economics

The community of Mayana in the Kavango East region held a demonstration against what they termed “illegal land grabbing” by the Mayana Small Scale Irrigation...

Virus to undo decade of progress in Africa

2 days ago - 02 July 2020 | Economics

The coronavirus pandemic could set back incomes in Sub-Saharan Africa by a decade as weak oil prices, a tourism standstill and business lockdowns shrink the...

Covid grant: ‘Govt has money’

2 days ago - 02 July 2020 | Economics

Jo-Maré Duddy – Nearly three months after government launched the Emergency Income Grant (EIG) to help needy Namibians who lost their jobs or income due...

Households’ short-term debt more than N$10 bn in May

3 days ago - 01 July 2020 | Economics

Individuals’ bank debt for other loans and advances, which include personal loans and credit card debt, shot up to more than N$8.01 billion last month.Total...

Africa free-trade vision clouded

3 days ago - 01 July 2020 | Economics

David Esnault and Robbie Corey-Boulet - A historic deal to smash down tariff barriers within Africa is being braked by the coronavirus pandemic and a...

Cabinet gives green light to sovereign wealth fund

3 days ago - 01 July 2020 | Economics

NAMPAWINDHOEKCabinet has approved, in principle, the establishment of a national sovereign wealth fund.A sovereign wealth fund is a state-owned investment fund or entity that comprises...

Turkey strives to revive tourist sector

1 week ago - 25 June 2020 | Economics

In normal times, tourists must rise at dawn to secure a free sunbed on the beach in Antalya, a popular holiday resort in southern Turkey.As...

Namport records 30 per cent increase in cargo handling

1 week ago - 24 June 2020 | Economics

The Namibian Ports Authority (Namport) handled a total of 5 561 999 tonnes during the 2019/20 financial year through equal contribution from the ports of...

Poorest countries to save billions in debt relief

1 week ago - 24 June 2020 | Economics

The world's poorest countries could save over US$12 billion owed to sovereign and other creditors this year through their participation in a debt-relief programme, with...

Dramatic downswing expected in Q2

1 week ago - 23 June 2020 | Economics

Phillepus Uusiku The economic downswing is set to deteriorate dramatically in the second quarter due to a sudden stop in domestic economic activity and...

Latest News

Big honour for Air Namibia’s...

1 day - 03 July 2020 | People

MICHELLINE NAWATISES Victor Nghifindaka, who hails from the Ondobe-yeno village in the Ohangwena Region, has been appointed as a member of the International Air...

Swapo exposes Nujoma to attacks...

1 day - 03 July 2020 | Politics

STAFF REPORTERWINDHOEKFormer youth minister Kazenambo Kazenambo says Swapo must take the blame for founding president Sam Nujoma being called a 'thug and liar' in parliament...

Mask-less Iipumbu spat on me:...

1 day - 03 July 2020 | Politics

STAFF REPORTERWINDHOEKSwapo MP Natangwe Iithete says he shoved Namibia Economic Freedom Fighters (NEFF) counterpart Kalimbo Iipumbu in the National Assembly on Wednesday because the opposition...

Conquering the logistics world every...

1 day - 03 July 2020 | People

Michelline Nawatises Oscar Kanovengi was born in Windhoek on 17 September 1978, the year in which the Herero Paramount Chief Clemence Kapuuo was assassinated....

Child marriage still prevalent

1 day - 03 July 2020 | Cultural

ELLANIE SMITWINDHOEKA total of 7% of girls in Namibia are married before the age of 18 and 2% are married before their 15th birthday.Although the...

Reconciliation too loose a concept

1 day - 03 July 2020 | Opinion

Reconciliation has become a buzzword lately in the National Assembly, but this has only solicited insults and physical scuffles.Part of the problem is that the...

Mayana community demonstrates over land

1 day - 03 July 2020 | Economics

The community of Mayana in the Kavango East region held a demonstration against what they termed “illegal land grabbing” by the Mayana Small Scale Irrigation...

Harnessing curiosity

1 day - 03 July 2020 | Banking

Mariselle Stofberg The diverse and ambitious Marion Scheün advises young individuals to find something that they are passionate about and cultivate that into a career....

Quarantine options under stage four

1 day - 03 July 2020 | Health

OGONE TLHAGEWINDHOEKPeople who do not want to commit themselves to quarantine facilities funded by the state will have the option to do so once the...

Load More