Import tax on pasta until 2014

GOVERNMENT has extended the period for taxation on imported pasta products for another seven years in order to protect local pasta production.

Finance Minister Saara Kuugongelwa-Amadhila made the announcement in the National Assembly on Tuesday. Imported pasta products, with and without egg, are presently taxed at a rate of 40 per cent and this will be extended until December 2014.This protects Namibia’s own pasta production, which is currently enjoying infant industry protection status and is thus cheaper than imported pasta.In a similar vein, the Finance Minister last week extended the infant industry protection status of locally produced long-life milk.Imported long-life milk is also subject to 40 per cent import tax.This will be gradually reduced over the next five years.Imported pasta products, with and without egg, are presently taxed at a rate of 40 per cent and this will be extended until December 2014.This protects Namibia’s own pasta production, which is currently enjoying infant industry protection status and is thus cheaper than imported pasta.In a similar vein, the Finance Minister last week extended the infant industry protection status of locally produced long-life milk.Imported long-life milk is also subject to 40 per cent import tax.This will be gradually reduced over the next five years.