Hold back tax bill until 2009, Mudge urges

TWO amendments to the existing tax law should be held back until March 2009, a member of the opposition has urged Parliament.

Henk Mudge of the Republican Party said one amendment provided for interest paid from unit-trust investments to be fully taxable between March 1 2008 and February 28 2009, only to be changed again a day later, on March 1 2009. From that date onwards, interest earned on investments up to N$100 000 will be tax free.Above that figure, a new withholding tax must be paid on the interest earned, but only at a rate of ten per cent.The obligation to pay withholding tax on interest by unit-trust companies needed time to have computer systems adjusted accordingly, he said.”Shortly afterwards, these must be changed again to allow for the reduced tax coming into effect March 2009,” Mudge told the House.”Unit-trust investments in Namibia are in excess of N$13,5 billion.Making all interest earned fully taxable (for one year) will have a negative effect on the financial investment sector,” Mudge argued.”It will not be possible for the unit-trust companies to finalise system changes over the next three months.Let us not rush this bill and rather refer it to the relevant Parliamentary standing committee.”The debate continues.From that date onwards, interest earned on investments up to N$100 000 will be tax free.Above that figure, a new withholding tax must be paid on the interest earned, but only at a rate of ten per cent.The obligation to pay withholding tax on interest by unit-trust companies needed time to have computer systems adjusted accordingly, he said.”Shortly afterwards, these must be changed again to allow for the reduced tax coming into effect March 2009,” Mudge told the House.”Unit-trust investments in Namibia are in excess of N$13,5 billion.Making all interest earned fully taxable (for one year) will have a negative effect on the financial investment sector,” Mudge argued.”It will not be possible for the unit-trust companies to finalise system changes over the next three months.Let us not rush this bill and rather refer it to the relevant Parliamentary standing committee.”The debate continues.