The proposed amendment to the Income Tax Act of 1981, which aims to increase the tax deductibility of retirement funds, has sparked considerable debate as sessions resumed yesterday in the National Council.

While some members of parliament supported changes to the bill, others have voiced concerns.

LPM's Harald Kambrunde criticized the amendment, arguing that tax policies should benefit citizens and encourage them to pay taxes and plan for retirement.

He believes that, if retirement savings are heavily taxed, people might be discouraged from retiring.

On the other hand, Mbangu praised the Namibia Revenue Agency for modernizing tax processes with the new e-filing and e-payment systems.

However, he argues that pensioners and retirees deserve tax relief.

Mbangu stated it is unfair for civil servants to pay taxes throughout their careers only to be taxed again on their pensions and retirement benefits.

He called on the Ministry of Finance and Public Enterprises to address this issue.

Mbangu also suggested that small and medium-sized enterprises should be exempt from tax payments.