WINDHOEK: The Namibia Investment Promotion and Development Board (NIPDB) has applauded the Minister of Finance and Public Enterprises, Iipumbu Shiimi, for the impactful changes in the 2024/25 National Budget, particularly targeted interventions and initiatives.

NIPDB Chief Executive Officer, Nangula Uaandja said the increase in the VAT threshold from an annual turnover of N.dollars 500 000 to N.dollars 1 million will ease the administrative burden on small businesses and accelerate their growth.

‘The reduction in the value-added tax (VAT) will enable small businesses to compete effectively and play a pivotal role in economic development,’ she said in a statement on Thursday.

NIPDB further commended the ministry for the gradual reduction in the corporate tax rate for non-mining entities from 32 per cent to 28 per cent.

Uaandja said this will contribute towards improving Namibia’s competitiveness and provide extra cash to large corporations, leading to potential further reinvestment.

‘A reduced corporate t
ax rate for MSMEs as defined from 32 per cent to 20 per cent shows the government’s commitment to encourage the growth of these entities,’ she said.

Uaandja also noted that the zero-rating on VAT for approved special economic zones for up to 10 years will encourage investments in projects aligned with the national priorities of mineral beneficiation, agro-processing, and business process outsourcing.

‘This intervention contributes to the government’s industrialisation agenda and drives further investments in the country,’ she said, adding that it helps large corporations contribute to the tax coffers, which reduces the tax burden on individual taxpayers.

In addition, Uaandja noted that the increase in the tax threshold from N.dollars 50 000 to N.dollars 100 000 means that many Namibians will be able to have more disposable income, which contributes to economic growth.

NIPDB is mandated to promote and facilitate investment and coordinate MSME activities, with the aim of contributing to economic development
and job creation.

Source: The Namibia Press Agency