The Minister of Finance, Ipumbu Shiimi, says the recently effected Tax Amendment Act holds more benefits than a reduction in an individual's tax bill.
Other tax incentives to companies and close corporations, for instance, are meant to encourage employers to take on more interns and expose them to the world of work.
In August 2023, the government introduced a tax incentive to help businesses create more job opportunities for young people.
In October, Shiimi announced that N$126 million would be set aside in the 2024/25 financial year to create around more than 5,000 internships.
He stated that employers can earn a tax break of up to 50% per intern each year.
"We are worried about people leaving universities but not having proper skills or jobs. If you are an employer and you are going to take in an intern, of course, you are going to pay an allowance, but we are going to deduct 50% of that allowance from your tax liability; practically, you are reducing your tax by 50%, and the idea behind that is to encourage us to take more and more interns so that we can equip our people who are leaving tertiary institutions with practical skills. All I hear is tax refund and not employing."
Additionally, businesses, including companies and close corporations, will benefit from a reduction in corporate tax to foster a more favourable environment for economic growth, including through the attraction of investment and job creation.
"If we need to, it has to be reduced to 31% and next year to 30% to reduce it further. Companies should still make contributions to incentivise companies and CC. More investments mean more jobs and more income."
Shiimi stated that corporate tax in Namibia is relatively high compared to neighbouring countries like Botswana, at 25% presently, and South Africa at 28%.
He also stated that tax relief to individuals would ordinarily be paid out at the end of the financial year, when tax returns are filed, for example, after March 2025, but the ministry made a concession for it to be paid out immediately.
On the question of those who retired during this year, after the implementation date for the tax relief was set, the minister says those individuals can approach their pension funds, or the Namibia Revenue Agency, to have that settled.