Stronger Together Namibia Budget Review 2017/2018

Transcription

1 Safari Court Hotel & Conference Centre March 2017 Stronger Together Namibia Budget Review 2017/2018

2 Budget Review 2017/ Key Focus Areas Numbers in the Budget Tax Comparisons Tax Reforms 2

3 Key Focus Areas 3

4 Key Focus Areas Maintaining Pro-growth Fiscal Consolidation: Making Impact where it Matters Macroeconmic Fundamentals & Fiscal Buffers Inclusive Growth & Economic Diversification Poverty Eradication Harambee Prosperity Plan Improved Public Service Delivery 4

5 Public Finance Reforms Mid-Year Budget Review Macro- Economic Modelling Public Procurement Act PPP Legislation Public Finance Management Bill Civil Service Wage Bill Public Expenditure Reviews 5

6 Namibian Economic Statistics Caiundo Unemployment at March 2017 Inflation at January 2017 Tombua Cahama Opuwo ANGOLA NAMIBIA Tsumeb Khorixas Okakarara Mavinga Rundu ZAMBIA Kataba Sesheke Luiana Livingstone Kongola Tsau ZIMBABWE 28.1% 1.3% 8.3% N$ Omaruru Windhoek Walvis Bay Maltahöhe South Atlantic Ocean Lüderitz Epata Gobabis Aranos Aroab Ghanzi Mamuno Kang BOTSWANA Tshabong Kuruman Orapa Gaborone Mafikeng Karasburg Upington Kimberley GDP Growth USD: NAD Exchange Rate NAMIBIA Kilometers Springbok Bitterfontein SOUTH AFRICA De Aar Victoria West Miles 6

7 The Numbers 7

8 -N$9bn -N$6bn -N$4bn N$ in Billions N$51.5bn N$61bn N$56.4bn N$62bn N$57bn N$61bn Revenue vs. Expenditure / / /19-20 Revenue Expenses Deficit 8

9 Debt Stock as % of GDP N$71.67bn N$75.22bn 2017/ / % 9

10 N$ billions Tax Revenue vs. Non-Tax Revenue Non-Tax Revenue N$2.66bn /8 N$56bn 2016/7 N$51bn N$56bn N$53.38bn Tax Revenue /8 10

11 Total Tax Revenue (N$ billion) Customs & Excise 37% Income taxes 36% Withholding Taxes 1% Property Taxes 1% VAT 26% 11

12 N$ in Billions SACU Receipts N$19.597bn N$17.978bn N$18.891bn 15 N$14.071bn / / / /20 12

13 N$ billions Spending Comparison 2017/8 N$62.5bn /7 N$61.5bn /8 13

14 Expenditure Execution Rates 100% 97.50% 96.40% 94.60% 80% 60% 40% 20% 0% 14

15 Top 10 Budget Allocations Education, Arts & Culture Finance Health & Social Services Defence Ministry of Safety & Security Transport Poverty Eradication & Social Welfare Higher Education, Training & Innovation Agriculture, Water & Forestry Urban & Rural Development N$ in Billions 15

16 Top 10 Budget Cuts Electoral Commission N$86m National Assembly Urban & Rural Development Works Labour & Related Agriculture, Water & Forestry Higher Education, Training & Innovation National Planning Commission Environment & Toursim International Relations & Cooperation N$68m N$669m N$151m N$24m N$338m N$432m N$22m N$39m N$65m 0% 20% 40% 60% 80% 100% 16

17 Spending Priorities Public Safety & Order Improved Public Administration Education Basic & Higher Economic & Infrastructure Development 17

18 Infrastructure Development Water & Storage Infrastructure Road Projects 16% Railway Projects Mass Land Serving N$9bn Port Development SME Development 18

19 Social Sector Investment N$12bn Ministry of Basic Education & Culture 48% N$6.5bn Ministry of Health & Social Services N$27bn N$3bn Ministry of Poverty Eradication 19

20 Tax Comparisons 20

21 Comparisons: Corporate Tax Rates 100% 80% 60% 40% 20% 28% 22% 32% 35% 25% 30% 0% South Africa Botswana Namibia Zambia Zimbabwe Angola 21

22 Comparisons: VAT Rates 20% 10% 14% 12% 15% 16% 15% 10% 0% South Africa Botswana Namibia Zambia Zimbabwe Angola 22

23 World Bank Report 2017 Ease of paying taxes 3 rd RSA 51 st 4 th Botswana 55 th 5 th Zambia 58 th 9 th Namibia th 29 th Angola 157 th 31 st Zimbabwe 164 th 23

24 World Bank Report 2017 Zimbabwe Number of Tax Payments required to be compliant Botswana 34 South Africa Angola 31 Namibia 27 Zambia 26 South Africa 7 24

25 World Bank Report 2017 Amount of hours required to be compliant Zimbabwe 242 South Africa 203 Zambia 186 Namibia 302 Botswana

26 Tax Reforms 26

27 Tax Amendments 01 Corporate Tax Rate 33% to 32% 02 WTS Rate 25% to 10% VAT Threshold N$500, Voluntary VAT Threshold N$200k 27

28 Tax Amendments 05 Restraint of Trade payment taxation 06 Recovery of tax debts (provisions) PAYE on directors fees 08 Lifting of corporate veil 28

29 Tax Amendments 01 Environmental Duties: 02 WTS: 10% to 25% 2016 Light bulbs Tyres CO 2 emissions Directors fees Foreign entertainers 29

30 Tax Proposals 2017/2018 Presumptive Tax Solidarity/Wealth Tax xxx Tax on Capital gains BEPS and 0% VAT 30

31 Promulgated but not yet effective 1 2 Export Levy Act Customs & Excise Amendment Act Team name Team name 31

32 SACU Excise Duty Increases Sin Taxes effective 22 February 2017 Rise in tobacco and alcohol excise duties: Increase New Duty 340 ml malt beer N$0.12 N$ ml bottle of unfortified wine N$0.23 N$ ml bottle of sparkling wine N$0.70 N$ ml bottle of spirits (whiskey, brandy, vodka etc.) N$4.43 N$52.56 Pack of 20 cigarettes N$1.06 N$ ml bottle ciders & alcoholic fruit beverages N$0.12 N$

33 Other Reforms Transfer Pricing Revenue Agency Inland Revenue Reforms ITAS System Tax Incentives Review DTA Framework Revision Tax Amnesty 33

34 Stronger Together True equality means holding everyone accountable in the same way, regardless of race, gender, faith, ethnicity or political ideology Hon. Minister of Finance,Mr. Calle Schlettwein quoting Monica Crowley 34

35 Thank you The Budget Speech and presentations are available on: The information contained in this publication by Namibia is provided for discussion purposes only and is intended to provide the reader or his/her entity with general information of interest. The information is supplied on an as is basis and has not been compiled to meet the reader s or his/her entity s individual requirements. It is the reader s responsibility to satisfy him or her that the content meets the individual or his / her entity s requirements. The information should not be regarded as professional or legal advice or the official opinion of. No action should be taken on the strength of the information without obtaining professional advice. Although take all reasonable steps to ensure the quality and accuracy of the information, accuracy is not guaranteed., shall not be liable for any damage, loss or liability of any nature incurred directly or indirectly by whomever and resulting from any cause in connection with the information contained herein PricewaterhouseCoopers ( ), the Namibian firm. All rights reserved. In this document, refers to PricewaterhouseCoopers in Namibia, which is a member firm of PricewaterhouseCoopers International Limited (IL), each member firm of which is a separate legal entity and does not act as an agent of IL.