The Minister of Finance and Public Enterprises, Iipumbu Shiimi, has introduced significant amendments to the Income Tax Act of 1981 to stimulate household incomes, foster a thriving business environment, and enhance Namibia's attractiveness to investors.

The new measures of the Income Tax Amendment Act of 2024 are meant to create a more competitive tax environment and support economic expansion.

Key changes include an adjustment to the tax tables, and raising the tax exemption threshold to N$100,000. This means that individuals earning below this amount per year will not be subject to the income tax.

Shiimi emphasised the importance of these amendments in providing relief to all taxpayers and encouraging investment.

"This action resulted in an injection of approximately $646 million into the pockets of taxpayers. On average, that results in N$12,000 tax relief per person annually."

The amendments specifically address Schedule 4, which pertains to tax rates for individuals and non-mining corporations.

In particular, the non-mining corporate tax rate will be reduced from 31% in 2024 to 30% in the following year.

"We remain above the African average of 2026 at this stage. However, we are committed to managing downwards in a responsible manner forward. I trust shareholders of companies that will benefit from this tax relief to reinvest tax savings into their businesses, grow the economy, and create more employment opportunities, especially for our youth."

This adjustment aims to enhance Namibia's competitive edge against regional peers.

The amendments repeal the exemption in Section 48 for long-term insurance companies, which previously excluded them from paying tax on dividends issued to non-resident shareholders.

Shiimi explained that this change is intended to ensure fairness and equity within the tax system, ensuring a level playing field for all entities.

He also reminded taxpayers to file their tax returns on time.