ELCRN propose grant for poor

THE Evangelical Lutheran Church in Namibia has proposed a Basic Income Grant (BIG) in a move to reduce poverty and inequality.

A document issued by the Desk for Social Development by the church, explained that BIG has the ability to lift people out of poverty to enable them to become economic active. “Research showed that an increase in income also increases the capacity for people to look for work and also increased their success in finding work.BIG would therefore not only be a safety net but it would be more like a springboard for people to find jobs and earn money,” it suggested.The Namibian Tax consortium (NAMTAX) made the proposal for BIG in the year 2002, which was asked to review the current tax system in the country.The proposal for a BIG is part of their recommendations to re-distribute income in Namibia.Church leaders, economic experts and representatives from the International Labour Organisation are attending a three-day international conference in Windhoek, with the theme: ‘Strengthening income security in Namibia: Poverty, HIV-AIDS and the need for a basic income grant.’ The conference is aimed to bring together local and international experts with key policy makers and stakeholders in Namibia in order to start a constructive debate for the benefit of the country’s marginalized and disadvantage people.According to the document, every Namibian would receive such a grant until s/he become eligible for a state pension at 60 years.In the case of children aged 17 or younger, the caregiver would receive the grant on behalf of the child.If there are six people living in a household and the grant is worth N$100, this household would receive then N$600 per month from the State.BIG would be funded by higher income earners that would bear the cost in form of a solidarity levy to finance the benefit to the poor, it suggested.The increase of a 6,5 per cent tax to finance BIG would allow the rich to pay for it; hence it would distribute income more fairly in society.In addition, it said, other funding methods included the increase of luxury goods such as cars, tobacco and alcohol.-Nampa”Research showed that an increase in income also increases the capacity for people to look for work and also increased their success in finding work.BIG would therefore not only be a safety net but it would be more like a springboard for people to find jobs and earn money,” it suggested.The Namibian Tax consortium (NAMTAX) made the proposal for BIG in the year 2002, which was asked to review the current tax system in the country.The proposal for a BIG is part of their recommendations to re-distribute income in Namibia.Church leaders, economic experts and representatives from the International Labour Organisation are attending a three-day international conference in Windhoek, with the theme: ‘Strengthening income security in Namibia: Poverty, HIV-AIDS and the need for a basic income grant.’ The conference is aimed to bring together local and international experts with key policy makers and stakeholders in Namibia in order to start a constructive debate for the benefit of the country’s marginalized and disadvantage people.According to the document, every Namibian would receive such a grant until s/he become eligible for a state pension at 60 years.In the case of children aged 17 or younger, the caregiver would receive the grant on behalf of the child.If there are six people living in a household and the grant is worth N$100, this household would receive then N$600 per month from the State.BIG would be funded by higher income earners that would bear the cost in form of a solidarity levy to finance the benefit to the poor, it suggested.The increase of a 6,5 per cent tax to finance BIG would allow the rich to pay for it; hence it would distribute income more fairly in society.In addition, it said, other funding methods included the increase of luxury goods such as cars, tobacco and alcohol.-Nampa