{"id":26771,"date":"2022-08-03T15:56:31","date_gmt":"2022-08-03T15:56:31","guid":{"rendered":"https:\/\/www.africa-press.net\/namibia\/all-news\/naloba-suggests-tax-relief-for-civil-servants"},"modified":"2022-08-03T16:04:00","modified_gmt":"2022-08-03T16:04:00","slug":"naloba-suggests-tax-relief-for-civil-servants","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/namibia\/all-news\/naloba-suggests-tax-relief-for-civil-servants","title":{"rendered":"Naloba suggests tax relief for civil servants"},"content":{"rendered":"

Africa-Press – Namibia. <\/strong><\/span>Aletta Shikololo<\/b><\/p>\n

The Namibia Local Business Association has pleaded with government to consider providing tax relief to civil servants, which would help to increase their net salaries on an interim basis until economic challenges have dissipated.<\/p>\n

\u201cNaloba advises the government to give back 10% of their tax portion to every civil servant, resulting in an increase on their net salaries on an interim basis,\u201d said vice president of the association, Peter Amadhila.<\/p>\n

This is to avoid the looming countrywide strike.<\/p>\n

The association asked the government to consider this advice within the next 14 days to give civil servants relief after an overwhelming majority voted last week to go on strike on a date to be announced soon.<\/p>\n

Amadhila said the strike will negatively affect crucial institutions such as schools, hospitals and businesses.<\/p>\n

\u201cCivil servants could skip their monthly bonds\u2019 payments, resulting in their houses, cars or properties being repossessed by the banks. Many families will be left devastated. The whole country will be left bleeding,\u201d he emphasised.<\/p>\n

The association further advised civil servants to refrain from going on strike, but<\/p>\n

to rather wait on the government to pronounce itself.<\/p>\n

During a media conference on Monday, Amadhila further recommended that the president and Cabinet refrain from travelling out of the country \u201cdue to costs, until the situation is solved\u201d.<\/p>\n

\u201cNaloba is also suggesting the suspension of parliament\u2019s recess for lawmakers to immediately address the matter without any delays,\u201d he added.<\/p>\n

Amadhila said the country has mineral and fishing resources that are of no benefit to the country. \u201cWith our resources versus our population, our country was not supposed to be struggling economically. Our debts were supposed to be minimal and every citizen was supposed to have access to a good life,\u201d he stressed, urging the government to summon all mining and fishing companies to invest and rescue the country.<\/p>\n

Speaking to New Era, local economist Klaus Schade was of the stance that Naloba\u2019s proposal won\u2019t help low-income earners who earn below the tax threshold of N$50 000 per annum, since they don\u2019t pay income tax.<\/p>\n

\u201cFurthermore, since higher income-earners pay more income tax, they would benefit most from the proposed tax refund, while low income-earners in particular would need assistance the most,\u201d he reasoned.<\/p>\n

Schade further suggested that government should consider increasing the tax threshold from the current N$50 000 per annum to N$100 000 per annum, and adjust tax brackets and marginal tax rates.<\/p>\n

\u201cThe current tax threshold and the<\/p>\n

income tax brackets have not been adjusted<\/p>\n

for inflation since 2013. Hence, employees might have moved into higher tax brackets with higher marginal tax rates, even if they<\/p>\n

have received salary increments below the inflation rate. These adjustments would reduce income tax payments and leave more disposable income in the pockets of taxpayers,\u201d he noted.<\/p>\n

In the same vein, the Namibia Public Workers Union (Napwu)\u2019s secretary general Petrus Nevonga said although Naloba\u2019s suggestion is an attempt by the association to find a possible solution, it does not address the problem for all civil servants.<\/p>\n

\u201cWe acknowledge their opinion, and it is good because it speaks for the civil servants\u2019 pleas to be solved. But it does not provide a solution to the financial problems of civil servants. With an increment, it creates a better level of affordability. One does not solve the employees\u2019 financial problems by giving cash which does not aim to improve their earning; that does not really solve the problem,\u201d he added.<\/p>\n

Nevonga thus requested government to revisit its position in order to avoid any possible strike. \u201cWe have tried every possible option, and going on strike is our last resort to finding a solution to the problem,\u201d he stated.<\/p>\n

Financial expert Josef Sheehama said tax relief to civil servants would mean a higher level of purchasing power, which would allow them to purchase more goods and services.<\/p>\n

\u201cThis means their surplus or cash flow improves as a result of tax relief,\u201d he observed.<\/p>\n

In addition, he explained, \u201ctax reliefs are inflationary as they increase the demand for products. As a result, if tax relief was met with a corresponding cut to government spending, inflationary pressures would not increase. However, the fundamental purpose of taxation is to raise revenue effectively through measures that suit Namibia\u2019s circumstances and administrative capacity\u201d.<\/p>\n

\u201cTherefore, I believe that the government stimulus is inefficient because of the contraction in economic activity, associated with deficit-financed spending. Reforms that improve incentives, reduce existing subsidies, avoid windfall gains and avoid deficit financing will have more auspicious effects on the long-term size of the economy,\u201d he continued.<\/p>\n

For More News And Analysis About Namibia<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Namibia. Aletta Shikololo The Namibia Local Business Association has pleaded with government to consider providing tax relief to civil servants, which would help to increase their net salaries on an interim basis until economic challenges have dissipated. \u201cNaloba advises the government to give back 10% of their tax portion to every civil servant, […]<\/p>\n","protected":false},"author":84,"featured_media":26770,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,7,8,12,16],"tags":[234,236,233],"class_list":["post-26771","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-head-lines","category-homepage-english","category-policy","category-twitter","tag-africa-press","tag-africa-press-namibia","tag-namibia"],"yoast_head":"\nNaloba suggests tax relief for civil servants - Namibia<\/title>\n<meta name=\"description\" content=\"Aletta Shikololo The Namibia Local Business Association has pleaded with government to consider providing tax r ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/namibia\/all-news\/naloba-suggests-tax-relief-for-civil-servants\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Naloba suggests tax relief for civil servants\" \/>\n<meta property=\"og:description\" content=\"Aletta Shikololo The Namibia Local Business Association has pleaded with government to consider providing tax r ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/namibia\/all-news\/naloba-suggests-tax-relief-for-civil-servants\" \/>\n<meta property=\"og:site_name\" content=\"Namibia\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2022-08-03T15:56:31+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2022-08-03T16:04:00+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/nambia\/sites\/29\/2022\/08\/postQueueImg_2-62ea9c5d76491.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"720\" \/>\n\t<meta property=\"og:image:height\" content=\"540\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/naloba-suggests-tax-relief-for-civil-servants#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/naloba-suggests-tax-relief-for-civil-servants\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Naloba suggests tax relief for civil servants\",\"datePublished\":\"2022-08-03T15:56:31+00:00\",\"dateModified\":\"2022-08-03T16:04:00+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/naloba-suggests-tax-relief-for-civil-servants\"},\"wordCount\":780,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/naloba-suggests-tax-relief-for-civil-servants#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/nambia\/sites\/29\/2022\/08\/postQueueImg_2-62ea9c5d76491.jpg\",\"keywords\":[\"africa press\",\"Africa Press-Namibia\",\"namibia\"],\"articleSection\":[\"all news\",\"economy\",\"head lines\",\"homepage-english\",\"policy\",\"twitter\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/namibia\/all-news\/naloba-suggests-tax-relief-for-civil-servants#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/naloba-suggests-tax-relief-for-civil-servants\",\"url\":\"https:\/\/www.africa-press.net\/namibia\/all-news\/naloba-suggests-tax-relief-for-civil-servants\",\"name\":\"Naloba suggests tax relief for civil servants - 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