Post on 03-May-2018
Stronger TogetherNamibia Budget Review 2017/2018
www.pwc.com.na
Safari Court Hotel & Conference Centre
March 2017
PwC
Budget Review 2017/2018
Key Focus Areas
Numbers in the Budget
Tax Comparisons
Tax Reforms
01 02 03 04
8 March 2017Namibia Budget Review 2017/2018
2
PwC
Key Focus Areas
Namibia Budget Review 2017/2018
3
8 March 2017
PwC
Key Focus Areas
Namibia Budget Review 2017/2018
4
8 March 2017
Inclusive Growth & Economic Diversification
Poverty Eradication
Harambee Prosperity Plan
Improved Public Service Delivery
“Maintaining Pro-growth Fiscal Consolidation: Making Impact where it Matters”
Macroeconmic Fundamentals & Fiscal Buffers1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
PwC
Public Finance Reforms
Namibia Budget Review 2017/2018
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8 March 2017
1 2 3 4 5 6
Mid-Year
Budget Review
Public Procurement
Act
PPP Legislation
Public Finance
Management Bill
Civil Service Wage Bill
Public Expenditure
Reviews
Macro-Economic Modelling
7
PwC
Namibian Economic Statistics
Namibia Budget Review 2017/2018
6
8 March 2017
ANGOLAZAMBIA
ZIMBABWE
BOTSWANA
SOUTH AFRICA
Tombua Cahama
Caiundo
Mavinga
Luiana
Kataba
SeshekeLivingstone
Tsau
OrapaGhanzi
Kang
Mamuno
TshabongMafikeng
Kuruman
Springbok
Bitterfontein
Victoria West
De Aar
KimberleyUpington
Gaborone
NAMIBIA
KongolaRundu
Opuwo
Tsumeb
OkakararaKhorixas
EpataOmaruru
Gobabis
Aranos
Maltahöhe
Lüderitz Aroab
Karasburg
Walvis Bay
Windhoek
South Atlantic Ocean
0 50
50
100
100
150 Kilometers
0 150 Miles
NAMIBIA
28.1%
Unemployment at March 2017
1.3%
GDP Growth
Inflation at January 2017
8.3%
N$12.96
USD: NADExchange Rate
PwC
The Numbers
Namibia Budget Review 2017/2018
7
8 March 2017
PwC
Revenue vs. Expenditure
Namibia Budget Review 2017/2018
8
8 March 2017
-20
-10
0
10
20
30
40
50
60
70
2016/17 2017/18 2018/19
Revenue Expenses Deficit
N$
in
Bil
lio
ns
N$
51.5
bn
N$
56
.4b
n
-N$
9b
n
N$
57
bn
N$
61b
n
N$
62
bn
N$
61b
n
-N$
6b
n
-N$
4b
n
PwC
Debt Stock as % of GDP
Namibia Budget Review 2017/2018
9
8 March 2017
N$71.67bn N$75.22bn
2017/2018 2019/2020
42%
PwC
Tax Revenue vs. Non-Tax Revenue
Namibia Budget Review 2017/2018
10
8 March 2017
40
30
20
10
70
60
502016/7 N$51bn
2017/8
80
N$
bil
lio
ns
N$53.38bn
N$2.66bn
Tax Revenue
Non-Tax Revenue
N$56bn
2017/8 N$56bn
PwC
Total Tax Revenue (N$ 53.38 billion)
Namibia Budget Review 2017/2018
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8 March 2017
Income taxes36%
VAT26%
Property Taxes
1%
Withholding Taxes
1%
Customs & Excise
37%
PwC
SACU Receipts
Namibia Budget Review 2017/2018
12
8 March 2017
0
5
10
15
20
25
2016/17 2017/18 2018/19 2019/20
N$
in
Bil
lio
ns N$14.071bn
N$19.597bn
N$17.978bnN$18.891bn
PwC
Spending Comparison
Namibia Budget Review 2017/2018
13
8 March 2017
40
30
20
10
70
60
50
2016/7 N$61.5bn
2017/8
80
N$
bil
lio
ns
2017/8 N$62.5bn
PwC
Expenditure Execution Rates
Namibia Budget Review 2017/2018
14
8 March 2017
97.50% 96.40% 94.60%
0%
20%
40%
60%
80%
100%
PwC
Top 10 Budget Allocations
Namibia Budget Review 2017/2018
15
8 March 2017
1.95
2.87
3.07
3.28
3.72
5.02
5.68
6.51
9.1
11.98
0 2 4 6 8 10 12 14
Urban & Rural Development
Agriculture, Water & Forestry
Higher Education, Training & Innovation
Poverty Eradication & Social Welfare
Transport
Ministry of Safety & Security
Defence
Health & Social Services
Finance
Education, Arts & Culture
N$ in Billions
PwC
Top 10 Budget Cuts
Namibia Budget Review 2017/2018
16
8 March 2017
0% 20% 40% 60% 80% 100%
International Relations & Cooperation
Environment & Toursim
National Planning Commission
Higher Education, Training & Innovation
Agriculture, Water & Forestry
Labour & Related
Works
Urban & Rural Development
National Assembly
Electoral Commission N$86m
N$68m
N$669m
N$151m
N$24m
N$338m
N$432m
N$22m
N$39m
N$65m
PwC
Spending Priorities
Namibia Budget Review 2017/2018
17
8 March 2017
1 3
Education Basic & Higher
42
Public Safety & Order
Economic & Infrastructure Development
Improved Public Administration
PwC
Infrastructure Development
Namibia Budget Review 2017/2018
18
8 March 2017
Water & Storage Infrastructure
Road Projects
Railway Projects
Mass Land Serving
Port Development
N$9bn
SME Development
16%
PwC
Social Sector Investment
Namibia Budget Review 2017/2018
19
8 March 2017
N$27bn
48%
Ministry of Basic Education & Culture
N$12bn
Ministry of Health & Social Services
N$6.5bn
Ministry of Poverty Eradication
N$3bn
PwC
Tax Comparisons
Namibia Budget Review 2017/2018
20
8 March 2017
PwC
Comparisons: Corporate Tax Rates
Namibia Budget Review 2017/2018
21
8 March 2017
28%22%
32% 35%25%
30%
0%
20%
40%
60%
80%
100%
South Africa Botswana Namibia Zambia Zimbabwe Angola
PwC
Comparisons: VAT Rates
Namibia Budget Review 2017/2018
22
8 March 2017
14%12%
15% 16% 15%
10%
0%
10%
20%
South Africa Botswana Namibia Zambia Zimbabwe Angola
PwC
World Bank Report 2017Ease of paying taxes
Namibia Budget Review 2017/2018
23
8 March 2017
Botswana
Zambia
Namibia
Angola
Zimbabwe
51st
55th
58th
74th
157th
164th
3rd
4th
5th
9th
29th
31st
5
5 19
RSA
PwC
World Bank Report 2017
Namibia Budget Review 2017/2018
24
8 March 2017
Number of Tax Payments required to be compliant
27Zimbabwe
Botswana 34
Angola
South Africa
Zambia
South Africa
Namibia
51
31
27
26
7
PwC
World Bank Report 2017
Namibia Budget Review 2017/2018
25
8 March 2017
Amount of hours required to be compliant
302Zimbabwe 242South Africa 203Zambia 186Namibia 302Botswana 152
PwC
Tax Reforms
Namibia Budget Review 2017/2018
26
8 March 2017
PwC
Tax Amendments
Namibia Budget Review 2017/2018
27
8 March 2017
02
04
2015
Corporate Tax Rate
33% to 32%
03
01
VAT Threshold
N$500,000
WTS Rate
25% to 10%
Voluntary VAT Threshold –N$200k
PwC
Tax Amendments
Namibia Budget Review 2017/2018
28
8 March 2017
06
08
2015
Restraint of Trade payment taxation
07
05
PAYE on directors fees
Recovery of tax debts (provisions)
Lifting of corporate veil
PwC
Tax Amendments
Namibia Budget Review 2017/2018
29
8 March 2017
02
2016
Environmental Duties:
• Light bulbs
• Tyres
• CO2 emissions
01WTS: 10% to 25%
• Directors fees
• Foreign entertainers
PwC
Tax Proposals – 2017/2018
Namibia Budget Review 2017/2018
30
8 March 2017
xxx
Presumptive Tax
Solidarity/Wealth Tax
BEPS and 0% VATTax on Capital gains
PwC
Promulgated but not yet effective
Namibia Budget Review 2017/2018
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8 March 2017
Team nameTeam name2
1 2
Export Levy Act
Customs & Excise Amendment Act 2016
PwC
SACU Excise Duty IncreasesSin Taxes effective 22 February 2017
Namibia Budget Review 2017/2018
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8 March 2017
Rise in tobacco and alcohol excise duties: Increase New Duty
340 ml malt beer N$0.12 N$1.36
750 ml bottle of unfortified wine N$0.23 N$2.71
750 ml bottle of sparkling wine N$0.70 N$8.60
750 ml bottle of spirits (whiskey, brandy, vodka etc.) N$4.43 N$52.56
Pack of 20 cigarettes N$1.06 N$14.30
340 ml bottle ciders & alcoholic fruit beverages N$0.12 N$2.22
PwC
Other Reforms
Namibia Budget Review 2017/2018
33
8 March 2017
Tax Amnesty
DTA Framework Revision
Tax Incentives
Review
ITAS System
Transfer Pricing
Revenue Agency
Inland Revenue Reforms
PwC
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
8 March 2017Namibia Budget Review 2017/2018
34
Thank you
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