Namibian tax reforms to boost fairness and competitiveness – Shafudah

Minister of finance Ericah Shafudah has announced that the government is moving ahead with comprehensive tax policy reforms aimed at enhancing fairness, competitiveness, and economic growth.

Shafudah said this in the National Assembly while tabling the 2025/26 appropriation amendment bill on Tuesday.

She said the reforms are in line with global trends to increase the tax-to-gross domestic product ratio and promote progressive taxation.

“The Namibian government is poised to implement a series of tax reforms designed to bolster both competitiveness and fairness within the economy,” she said, adding that the reforms are intended to reduce inequality while ensuring a more efficient tax system.

According to Shafudah, the income tax amendment bill of 2025 has been tabled in parliament and is expected to be passed into law before the end of the current financial year.

Key proposals in the bill include improvements to the lump-sum retirement benefit, new caps on housing benefit tax structures, and adjustments to the taxation of dividend income from preference shares.

Corporate tax reforms under the bill will introduce a 20% rate for small and medium enterprises, reduce the rate for non-mining businesses to 28%, and establish a 20% rate for enterprises operating in special economic zones.

“The alignment of taxation of long-term insurers to other non-mining businesses forms part of the reforms,” the minister noted.

Shafudah also revealed that the Ministry of Finance is developing a medium-term revenue strategy to guide ongoing reforms and resource mobilisation efforts, with further tax proposals to be unveiled in the 2026/27 nain budget.

In efforts to ease tax compliance, the validity of tax good standing certificates will be extended to one year for individuals and SMEs, and six months for other taxpayers.

“We continue to review the ease of tax compliance. Good standing certificates are a necessary tool in tax compliance, to reduce the cost of compliance to taxpayers and tax administration,” said the minister.

Further tax proposals are expected to be revealed in the main budget announcement scheduled for February 2026.

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