Members of the Namibian National Assembly backed the proposed Income Tax Amendment Bill during a debate on Wednesday, according to AllAfrica. Lawmakers welcomed tax relief measures and the creation of an independent Tax Court, yet voiced concerns about the bill’s impact on ordinary taxpayers and government revenue. The debate highlighted tensions between encouraging economic activity and ensuring reforms do not compromise state income or make it difficult for citizens to challenge assessments.
Martin Lukato supported deductions for retirement and education policies, arguing they improve disposable income. He also backed reducing corporate tax for small enterprises to 20% to encourage formalisation. However, Lukato raised concerns about the taxation of retirement benefits and restrictions on offsetting secondary business losses against salary. He warned that penalties of up to 200%, plus interest, could burden taxpayers failing to declare income correctly, calling for accessible services outside major towns.
Modestus Atshipara supported the increase in the tax-free retirement lump-sum limit to N$375,000 and the corporate tax cut for non-mining firms from 30% to 28%. He also noted a N$400,000 cap on housing benefits. Atshipara questioned whether the government assessed the revenue implications of these cuts, warning that reducing rates without calculating losses could hinder public service funding. He stressed that attracting foreign investment must not discourage local shareholders and small investors.
Lilian Lutuhezi focused on taxpayer education, noting informal traders may not understand obligations. She urged the Namibia Revenue Agency to provide simplified information in indigenous languages and conduct rural outreach. Lutuhezi questioned if ordinary taxpayers could afford legal representation before the new Tax Court, warning that limiting appeals to initial notice grounds could disadvantage those without professional assistance.
Sharonice Busch described the independent Tax Court as necessary after a 2021 High Court judgment invalidated previous arrangements. She urged immediate operationalisation, noting prolonged disputes affect cash flow. Festus Thomas argued the bill must address the financial pressure on citizens, describing Pay As You Earn and Value Added Tax as a double burden. He called for raising the tax-free threshold, which he said lagged behind inflation, and zero-rating essential goods to relieve low-income households.