Of tax-free allowances and inequality – Klaus Schade
Sometimes, well-meant interventions have unintended consequences. One case in point are tax-free allowances, such as tax-free housing allowances, tax-free car allowances, tax-free pension fund contributions, etc. Namibia has a progressive income tax system with marginal tax rates rising with increased taxable income. This, however, results in tax-free allowances being regressive meaning that the better off […]
Doubling Psemas fees will impact lower earners harder – Schade
During the tabling of the national budget on Wednesday, Finance Minister Calle Schlettwein announced that the member’s contribution to the Public Service Medical Aid Scheme (Psemas), which has for long been static, will be doubled to bring the total contribution from the current N$410 million to N$820 million, effective April 2019. However, an economic analyst […]
Namibia’s ability to be a logistics hub challenged
NAMIBIA’S vision of becoming a logistics hub is too ambitious, desultory and costly, and should be reassessed, says Rainer Ritter of the Economic Association of Namibia (EAN). Ritter made the above remarks at the launch of EANs public enterprises review, titled Namport Within the Context of a Logistics Hub in Windhoek this week. The review […]
MTEF2019/20 to 2021/22 – First impressions
EAN member Klaus Schade shared his first impressions of the MTEF 2019/20 to 2021/22 at a breakfast meeting organised by the Parliamentary Standing Committee of Economics and Public Administration and the Friedrich-Ebert Stiftung on 28 March 2019.
To empower or to disempower?
The world has just celebrated International Women’s Day with calls for additional efforts to empower women. Similarly, empowering currently disadvantaged persons is high on our national agenda. However, it appears empowerment is limited to the formal side of society and the economy. Vendors (often women) trying to make ends meet and cater not only for […]
Namibia’s fiscal policy at a crossroads
The Namibian economy is at a difficult juncture when it comes to its fiscal policy since the country’s independence in 1990, which has seen government debt and deficit levels rise significantly over the years reaching critical levels of 50% of the gross domestic product (GDP) exacerbated by weak economic recovery. Economic experts have been pressuring […]
Budget delay raises suspicions
Delays in tabling the 2019/20 national budget have raised suspicions amongst economists, who strongly suspect that the economy might be in turmoil than widely thought. Executive Assistant to the Finance Minister, Esau Mbako, confirmed on Thursday that the tabling of the 2019/20 fiscal year budget has been postponed to the 27th of March, the second […]
Consumption to economic growth dips
THE contribution of household consumption to economic growth declined to -4% in 2017, from a positive growth of 6% in 2016, according to statistics provided by the Namibia Statistics Agency. The annual national accounts’ report by the Namibia Statistics Agency (NSA) showed that in 2017, private households’ consumption amounted to approximately N$121 million each for […]
No Fuel Hikes for March
MINES and energy minister Tom Alweendo last Friday announced that fuel prices will remain. The prices at Walvis Bay will be N$12,05 per litre for petrol and N$13,13 per litre for diesel for the month of March. This is the third consecutive month that the ministry has kept fuel prices unchanged, with the minister saying […]
Budget needs to address civil service and budget deficit
With the date of the tabling of the national budget confirmed for Wednesday, 13 March, 2019, economists have pointed out the bloated wage bill, under-performing public enterprises, including a review of the public sector, and the budget deficit as some of the most crucial aspects that Finance Minister, Calle Schlettwein, needs to address. “Natural attrition […]