The Minister of Finance and Public Enterprises, Iipumbu Shiimi, says the recently effected Tax Amendment Act holds more benefits than a reduction in individuals 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 five thousand internships. 

He stated that employers can earn a tax break of up to 50 percent, per intern, each year.

Additionally, businesses, including companies and close corporations, will benefit from a reduction in corporate tax to foster a more favorable environment for economic growth, including through attraction of investment and job creation. 

Shiimi stated that corporate tax in Namibia is relatively high compared to neighbouring countries like Botswana, at 25 percent presently, and South Africa at 28 percent.

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.