Dull budget, opposition says

THE new Budget of N$22,4 billion which Finance Minister Saara Kuugongelwa-Amadhila tabled yesterday was dull, unexciting and just “more of the same”, opposition parties said.

“There is nothing new, just regular increases and the State pension increases for pensioners from N$370 to N$450 is a small help for our senior citizens as the budget allocations can be categorised as pre-election efforts,” said DTA chairman Johan de Waal. “This is underscored by the N$2 000 per month for war veterans,” De Waal told The Namibian yesterday after the Minister’s Budget speech.”I expected definite steps by Government to eliminate or at least reduce the people’s problems who have to bear the brunt of stiff fuel price increases, including paraffin, and high interest rates, but the Minister announced no tax relief,” De Waal pointed out.”Not only will taxpayers suffer as fuel price increases accelerate inflation and increase living costs, but Namibia becomes increasingly uncompetitive for investors.”De Waal told The Namibian that corporate tax in Namibia stands at 35 per cent, the highest in the region.South Africa lowered corporate tax from 29 to 28 per cent last month to stimulate investment in its economy.Individual income tax is around 35 per cent for income above N$200 000 a year in Namibia, while South Africa granted a tax break for individuals.Small and medium enterprises in South Africa are relieved from paying value-added tax (VAT) if their income is below N$1 million a year.”The Namibian budget does not reflect anything like that for Namibian taxpayers,” De Waal pointed out.He was also concerned about Government’s expenditure and revenue estimates, which he described as being “way off the mark.””Revenue was billions higher than expected for the 2007-08 financial year, we heard today, so if the Ministry cannot be more precise, then how exact is the document we received today for the Medium Term Expenditure Framework (MTEF), which goes until March 2011?” he wanted to know.CoD president Ben Ulenga said the new Budget did not deserve a “standing ovation.””There were some sweeteners for the well-off with regard to tax payable on unit trusts coming down from 35 to 10 per cent, but the poor and ordinary salary earners in lower-income groups will have no tax relief,” Ulenga criticised.”I expected genuine attempts at poverty alleviation.”Ulenga further pointed out that the budget allocation for education of N$4,7 billion – one billion more than last year – was not adequate to build new classrooms and provide teaching aids, books and stationery for the country’s approximately 500 000 schoolchildren.”I hoped Government would be able to turn around the education sector after 18 years, but this will unfortunately not be achieved, I am afraid,” Ulenga told The Namibian.He welcomed the small increase in party funding for all political parties represented in the National Assembly, although the exact amounts have not yet been revealed.”This is underscored by the N$2 000 per month for war veterans,” De Waal told The Namibian yesterday after the Minister’s Budget speech.”I expected definite steps by Government to eliminate or at least reduce the people’s problems who have to bear the brunt of stiff fuel price increases, including paraffin, and high interest rates, but the Minister announced no tax relief,” De Waal pointed out.”Not only will taxpayers suffer as fuel price increases accelerate inflation and increase living costs, but Namibia becomes increasingly uncompetitive for investors.”De Waal told The Namibian that corporate tax in Namibia stands at 35 per cent, the highest in the region.South Africa lowered corporate tax from 29 to 28 per cent last month to stimulate investment in its economy.Individual income tax is around 35 per cent for income above N$200 000 a year in Namibia, while South Africa granted a tax break for individuals.Small and medium enterprises in South Africa are relieved from paying value-added tax (VAT) if their income is below N$1 million a year.”The Namibian budget does not reflect anything like that for Namibian taxpayers,” De Waal pointed out.He was also concerned about Government’s expenditure and revenue estimates, which he described as being “way off the mark.””Revenue was billions higher than expected for the 2007-08 financial year, we heard today, so if the Ministry cannot be more precise, then how exact is the document we received today for the Medium Term Expenditure Framework (MTEF), which goes until March 2011?” he wanted to know.CoD president Ben Ulenga said the new Budget did not deserve a “standing ovation.””There were some sweeteners for the well-off with regard to tax payable on unit trusts coming down from 35 to 10 per cent, but the poor and ordinary salary earners in lower-income groups will have no tax relief,” Ulenga criticised.”I expected genuine attempts at poverty alleviation.”Ulenga further pointed out that the budget allocation for education of N$4,7 billion – one billion more than last year – was not adequate to build new classrooms and provide teaching aids, books and stationery for the country’s approximately 500 000 schoolchildren.”I hoped Government would be able to turn around the education sector after 18 years, but this will unfortunately not be achieved, I am afraid,” Ulenga told The Namibian.He welcomed the small increase in party funding for all political parties represented in the National Assembly, although the exact amounts have not yet been revealed.