By Hilary Mare
AS fiscal consolidation gathers faster pace, the Government and the private sector should increasingly work together on a mix of other policy interventions to minimise the impact of expenditure cuts on growth and job creation, Finance Minister Calle Schlettwein has said.
Addressing delegates at the northern branch: Namibia Chamber of Commerce and Industry 2016 post-mid-year budget review, Schlettwein invited the private sector to find investment avenues in such sectors as energy, water, housing, logistics and logistical value chains, technology and innovation as well as SME financing.
“The PPP Bill is now before Parliament, and the draft regulations are being finalised by the Legal Drafters. The PPP legal framework will further catalyse private sector participation in infrastructure development and service delivery for projects with underlying income base. I thus invite the private sector to find investment avenues in such sectors as energy, water, housing, logistics and logistical value chains, technology and innovation as well as SME financing,
“The Ministry has initiated a consultative forum with the private sector to propose practical solutions on investment opportunities on infrastructure, domestic liquidity and reserves enhancement and measures to enhance cooperation on taxation issues. I am pleased to extend invitation to NCCI to participate in this forum,” he said. For equity purposes, Schlettwein said that Government has introduced measures to expand the tax base and bring potential taxpayers in the tax net so that everybody in the taxpaying position can contribute to the socio-economic development of the country and the maintenance of the public infrastructure and services such as education and health which everyone enjoys.
Due to the reason that about 27 to 30 percent of the economy is in the informal sector, with some lucrative and profitable economic activities, Government has further proposed to introduce a Presumptive Tax on small and medium-sized units to bring this sector in the tax net. The design features of this tax are still in formative stage, but it will be based on the annual turnover at a rate that takes into consideration the ability to pay. “This consultation forum and interaction remain important for on-going collaboration and a common commitment to achieving national development goals. The key policies for the medium to long term are to bring about inclusivity and the narrowing of income inequalities, growing the economy and promoting job creation. “I therefore wish to urge for greater collaboration between the Government, the private sector and development partners as we chart our way through current adjustment phase. Equally, I also wish to urge for greater tax compliance, tax education and timely settlement of tax obligations. This consultation and similar arrangements are a platform through which we objectively interrogate our strategies and propose means of seizing the opportunities that we face within resources at our disposal,” he concluded.
Confidente. Lifting the Lid. Copyright © 2015