Union wants Namdeb tax break

The mineworkers' union says a tax break will extend Namdeb's operations into the future.

03 September 2019 | Business

The Mineworkers Union of Namibia's southern branch wants the government to give Namdeb a tax break for five to seven years in an effort to save the mine from closure.

Diamond-mining companies are obligated to pay an effective 55% corporate profit tax in addition to a 10% export royalty on rough diamonds. Namdeb's exact tax payments remain confidential.

The government is heavily reliant on diamond mining. The Bank of Namibia's recent economic outlook forecast that diamond mining is expected to contribute nearly N$17.4 billion at current prices to Namibia's forecast gross domestic product (GDP) of about N$202.8 billion. Last year, the sector's contribution was about N$18.2 billion.

Shedding light on the proposed tax break, the MUN southern branch's deputy secretary Hashondali Kakuti said it would help ensure the sustainability of Namdeb's operations. The union believes that if a waiver is granted, it would free up necessary capital for Namdeb's accretion mining processes, which the union has said will ensure the continued existence of the mines as well as the creation of between 200 and 300 new jobs.





“Engagements have been held with the Oranjemund town council as well as the ministries of mines and finance. We would like a tax waiver for between five and seven years. We need cash which will be invested in accretion activities. In the absence of that, we will need cash from government,” Kakuti said.

According to him, provision was made in the mineral and diamond Acts for the temporary suspension of tax payments to the government.





The ministry of finance was reviewing Namdeb's financial statements dating back to 2011, Kakuti said.



“For the waiver to be approved it would need Cabinet approval and it is for that reason that we have also engaged the secretary-general of Swapo, Sophia Shaningwa.



“If this is approved it could lead to the creation of 200 to 300 jobs. We are also doing this for the sustainability of the mines. It is up to the government to decide if Namdeb has a life or not,” said Kakuti.



Namdeb spokesperson Shangelao Ndadi said it was constantly engaging its stakeholders about the future of the mine. According to her, Namdeb welcomed the move by the union.



“Namdeb has been rigorously engaging all its stakeholders regarding the future of its operations. While we are unable to comment on the specific, as it relates to the MUN's engagements with different ministries, we can confirm that we welcome any positive intervention that seeks to create a viable future for our operations and to safeguard continued employment,” Ndadi said.



Similar calls for a tax break were made in 2009 following the global economic crisis which saw Namdeb shed 600 jobs, and again in 2013.



The ministry of finance's spokesperson, Tonateni Shidhudhu, did not respond to an email requesting comment.



OGONE TLHAGE

Similar News

 

The life of a payroll administrator

2 days ago - 13 September 2019 | Business

Yvonne Hamutenya I am employed as a payroll administrator within Air Namibia’s human resources department. I joined the company in March 2016. My core responsibility...

Great risk, great reward

2 days ago - 13 September 2019 | Business

Evany van Wyk In only three years, Braam Vermeulen and his two other founding partners...

Perseverance and a good attitude is key

2 days ago - 13 September 2019 | Business

Evany van Wyk Growing up in the small town of Rehoboth, Chantell Engelbrecht longs for the times she used to play street soccer with her...

Fear is not a factor

2 days ago - 13 September 2019 | Business

Michelline Nawatises Primus Shaapopi was born at Eenhana in the Ohangwena Region. For 17 years, he was raised as a Catholic by his grandmother at...

Self-motivation and teamwork

2 days ago - 13 September 2019 | Business

Mariselle StofbergEvery new challenge can translate into a learning experience, which helps Natalia Simon gain deeper knowledge of my profession.Simon has never allowed the challenges...

Adding value to the equation

2 days ago - 13 September 2019 | Business

Evany van Wyk Born and raised in Oranjemund in the //Karas Region, Marisol Basson attended high school in South Africa. She decided to study marketing...

Energetic and full of ideas

2 days ago - 13 September 2019 | Business

Michelline Nawatises Marike Botha is the legal consultant for Sanlam’s affluent market. Botha is responsible for all legal matters, including legal advice, buy-and-sell agreements,...

Lewcor buys Elizabeth Bay mine

2 days ago - 13 September 2019 | Business

A local family business, Lewcor Group, has acquired a 100% shareholding of Namdeb's Elizabeth Bay. Namdeb announced yesterday the transaction has a value of N$120...

Serious about serious

2 days ago - 13 September 2019 | Business

Mariselle Stofberg With the first sip one is taken on a journey. Each product has a distinct profile that allows you to explore the intricacies,...

Veldsman wins massive grant

2 days ago - 13 September 2019 | Business

Mariselle Stofberg Fresenius Kabi recently announced that Namibian-born Lizl Veldsman (35) is the winner of the JUMPstart research grant.The grant was awarded at the 41st...

Latest News

Great risk, great reward

2 days ago - 13 September 2019 | Business

Evany van Wyk In only three years, Braam Vermeulen and his two other founding partners...

Once bitten, twice shy

2 days ago - 13 September 2019 | Economics

The Government Institutions Pension Fund says it cannot guarantee the success of its unlisted investment scheme but has taken precautions to ensure that it does...

Rape: No means no

2 days ago - 13 September 2019 | Crime

Police chief Sebastian Ndeitunga yesterday underlined a woman's right to say no and urged Namibians to band together to end the epidemic of violence by...

Perseverance and a good attitude...

2 days ago - 13 September 2019 | Business

Evany van Wyk Growing up in the small town of Rehoboth, Chantell Engelbrecht longs for the times she used to play street soccer with her...

Fear is not a factor

2 days ago - 13 September 2019 | Business

Michelline Nawatises Primus Shaapopi was born at Eenhana in the Ohangwena Region. For 17 years, he was raised as a Catholic by his grandmother at...

Self-motivation and teamwork

2 days ago - 13 September 2019 | Business

Mariselle StofbergEvery new challenge can translate into a learning experience, which helps Natalia Simon gain deeper knowledge of my profession.Simon has never allowed the challenges...

Adding value to the equation

2 days ago - 13 September 2019 | Business

Evany van Wyk Born and raised in Oranjemund in the //Karas Region, Marisol Basson attended high school in South Africa. She decided to study marketing...

SOEs a burden - Jooste

2 days ago - 13 September 2019 | Government

Public enterprises minister Leon Jooste says state-owned enterprises in Namibia, with the exception of a few, have failed to optimally deliver on their mandates.“In some...

Let's talk about sex

2 days ago - 13 September 2019 | Opinion

Teen pregnancy in Namibia remains a rising concern. The high teen pregnancy rate has also resulted in many girls dropping out of school to stay...

Load More