Good news! Sanitary pads to be zero VAT rated
18 March 2021 | Health
Shiimi made the announcement in the National Assembly while tabling the 2021/22 National Budget themed ‘Boosting Resilience and Recovery’.
He said the decision was taken following extensive consultation with civil society, which included facilitation by the Institute of Public Policy Research, and urged all suppliers and retailers to pass on the relief to consumers once the law is enacted.
Some Members of Parliament previously also urged the government to introduce VAT free sanitary pads, with leader of the Popular Democratic Movement McHenry Venaani tabling the motion in 2016. The same motion was also recently tabled by Deputy Minister of Information and Communication Technology, Emma Theofelus.
The tax policy measure will take effect in the 2022/23 financial year.
Shiimi also announced that following consultation with the Namibia Savings and Investment Association (NaSIA), the tax deductibility on pension funds and educational policy contributions will be increased from the current N$40 000 to a maximum of N$150 000. This is done to encourage savings for retirement purposes as previously announced.
“I look forward to future collaboration with NaSIA on further measures to mobilise domestic savings for investment in the real and services sectors of the economy, introduction of a 10 per cent withholding tax on dividends paid to Namibians, similar to the withholding tax provision for foreign shareholders for equity consideration and in a manner which ensures that dividends are not taxed more than once,” said Shiimi. – Nampa