Schlettwein to table new tax bill
Staff reporter - Finance minister Calle Schlettwein will table a bill providing for the introduction of a presumptive tax on the informal sector of the economy when the National Assembly opens for business in the New Year.
He made the announcement at a post-budget discussion held in Walvis Bay last week.
“During the next session of Parliament, it is my intention to table the tax proposal for the introduction of the presumptive tax on the informal sector, while giving due consideration to the micro units, and introduce measures to protect the tax base from erosion, profit shifting and illicit flows by eliminating some categories of tax exemptions,” he said.
He also announced plans to further bolster existing revenue streams but gave his assurance that tax rates would not be increased to contend with a shortfall in revenue.
“We will continue to strengthen the mobilisation of domestic revenue streams through tax policy and tax administration reforms to support the implementation of the fiscal consolidation and enhance the distributional impacts of tax policy,” he said.
He also spoke about the planned introduction of an integrated tax system and said the long-anticipated revenue agency would become operational in due course.
“We intend rolling out the integrated tax system mid-next year,” he said.
“The Namibia Revenue Agency Bill is passed by Parliament and due for enactment. The Ministry of Finance in collaboration with all stakeholders will proceed with the orderly implementation of the transitional arrangements for this important reform.”
He gave his assurance that there would be no increases in the general tax rates. Instead, he said, businesses would be encouraged to invest as a result of not having to pay higher taxes.
“As the economic recovery takes shape, it is not my intention to increase general tax rates. But we intend to bring all potential taxpayers into the tax net and achieve full compliance. This is to allow for economic agents to produce and invest, while creating incentive to work and promoting equity and fairness of the tax system,” he said.
He made the announcement at a post-budget discussion held in Walvis Bay last week.
“During the next session of Parliament, it is my intention to table the tax proposal for the introduction of the presumptive tax on the informal sector, while giving due consideration to the micro units, and introduce measures to protect the tax base from erosion, profit shifting and illicit flows by eliminating some categories of tax exemptions,” he said.
He also announced plans to further bolster existing revenue streams but gave his assurance that tax rates would not be increased to contend with a shortfall in revenue.
“We will continue to strengthen the mobilisation of domestic revenue streams through tax policy and tax administration reforms to support the implementation of the fiscal consolidation and enhance the distributional impacts of tax policy,” he said.
He also spoke about the planned introduction of an integrated tax system and said the long-anticipated revenue agency would become operational in due course.
“We intend rolling out the integrated tax system mid-next year,” he said.
“The Namibia Revenue Agency Bill is passed by Parliament and due for enactment. The Ministry of Finance in collaboration with all stakeholders will proceed with the orderly implementation of the transitional arrangements for this important reform.”
He gave his assurance that there would be no increases in the general tax rates. Instead, he said, businesses would be encouraged to invest as a result of not having to pay higher taxes.
“As the economic recovery takes shape, it is not my intention to increase general tax rates. But we intend to bring all potential taxpayers into the tax net and achieve full compliance. This is to allow for economic agents to produce and invest, while creating incentive to work and promoting equity and fairness of the tax system,” he said.
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