Opposition parties welcome ‘normal and neutral’ Budget

OPPOSITION parties did not have too much to criticise about the this year’s N$16,6 billion National Budget tabled by Finance Minister Saara Kuugongelwa-Amadhila yesterday.

“On the face of it, this appears to be a positive Budget,” said Tsudao Gurirab, economic expert of the opposition Congress of Democrats (CoD). “The prudent thing to do is to use the windfall of the revenue received in the current financial year ending this month to reduce Government debt,” said Gurirab in a statement issued last night.”We welcome the increased tax threshold.Given increasing poverty, Namibians were looking forward to this in the previous two budgets,” Gurirab said.The Minister increased the threshold of tax-free income for individual taxpayers from N$24 000 to N$36 000 a year.Tax is now only payable from N$36 001 onwards.Johan de Waal, Chairman of the DTA, said it was a “normal and neutral” Budget.”The tax relief for those with the lowest income is a welcome step,” he told The Namibian.”We are also pleased that the Minister decreased the interest rate for tax repayment, which now is 10 per cent and remains at that level.Up to now the interest rate increased each month.The decreased and stable interest rate will encourage a lot more people who owe the Receiver of Revenue money, to pay back their tax on a regular basis.”The large amount of money going to Air Namibia was a big problem for the DTA, however, De Waal added.”We have warned Government for years that they should not throw good money after bad and that it is taxpayer’s money going to the airline, but they keep on doing that.”Minister Kuugongelwa-Amadhila also announced that taxpayers can now deduct N$40 000 instead of N$30 000 from their taxable income for their retirement fund contributions.”This will provide an incentive for savings,” she told the House.She further announced that Government would make more funds available for social grants paid out to orphans and vulnerable children.”This enables us to provide coverage to an additional 78 000 OVCs until March 2010.””The prudent thing to do is to use the windfall of the revenue received in the current financial year ending this month to reduce Government debt,” said Gurirab in a statement issued last night.”We welcome the increased tax threshold.Given increasing poverty, Namibians were looking forward to this in the previous two budgets,” Gurirab said.The Minister increased the threshold of tax-free income for individual taxpayers from N$24 000 to N$36 000 a year.Tax is now only payable from N$36 001 onwards.Johan de Waal, Chairman of the DTA, said it was a “normal and neutral” Budget.”The tax relief for those with the lowest income is a welcome step,” he told The Namibian.”We are also pleased that the Minister decreased the interest rate for tax repayment, which now is 10 per cent and remains at that level.Up to now the interest rate increased each month.The decreased and stable interest rate will encourage a lot more people who owe the Receiver of Revenue money, to pay back their tax on a regular basis.”The large amount of money going to Air Namibia was a big problem for the DTA, however, De Waal added.”We have warned Government for years that they should not throw good money after bad and that it is taxpayer’s money going to the airline, but they keep on doing that.”Minister Kuugongelwa-Amadhila also announced that taxpayers can now deduct N$40 000 instead of N$30 000 from their taxable income for their retirement fund contributions.”This will provide an incentive for savings,” she told the House.She further announced that Government would make more funds available for social grants paid out to orphans and vulnerable children.”This enables us to provide coverage to an additional 78 000 OVCs until March 2010.”