Some highlights of Namibia's 2018/19 Budget

Some highlights of Namibia's 2018/19 Budget
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Ministry of Finance

Finance Minister Calle Schlettwein today delivered the 2018/19 budget speech under the theme, 'Shared Prosperity'.
• Government plans to spend N$65 billion, compared to N$66 billion in the previous year.
• Urban and Rural Development receives N$2.2 billion, and a total of about N$7.0 billion over the MTEF. The emphasis is shifted to the provision of sanitation, serviced urban land and bulk services for water, sewage and electricity.
• Safety and Security is allocated N$5.2 billion.
• Defence receives N$6.0 billion.
• Old Age Pension is increased by N$50.00 per month.
• Poverty Eradication and Social Welfare is allocated N$3.4 billion, 3.7% more than the revised allocation for the previous year and about N$10.6 billion.
• Health and Social Services receives N$6.5 billion.
• Higher Education, Training and Innovation receives N$3.2 billion and about N$9.8 billion over the MTEF. This entails: N$960 million for UNAM, N$600 million for NUST and N$1.45 billion for NSFAF in respect of FY2018/19.
• Basic Education receives N$13.5 billion
• Social sector takes up about half of the budget, with the share of the allocation standing at 49.2% and averaging around this level over the MTEF. This is in line with the historical share accorded to this sector. This is N$28.8b in FY2018/19 or N$86.9b over MTEF
• Subject income derived from commercial activities by charitable, religious, educational and other types of institutions under Section 16 of the Income Tax Act to normal corporate tax. Such institutions will be required to register as taxpayers.
• 10% dividend tax for dividends paid to residents to enhance the fairness of the tax system.
• Reduce lower bracket tax rate from 18% to 17% and introduce new tax rates of 39% and 40% for individuals earning over N$1,5m and N$2,5m respectively. This proposal seeks to relieve the low-income earners and reinforce the progressivity of the tax system