Growing for the future* 15 March 2007 … · 15 March 2007 Namibia Budget Review 2007 Page 3 PricewaterhouseCoopers Growth percentages 2006 Estimated growth in primary industries

Namibia Budget Review 2007Growing for the future*15 March 2007

PwC*connectedthinking

Increase in sin taxes

Cigarettes 10.7%Cigarette tobacco 5.3%Cigars 10.5%Pipe tobacco 5.8%Natural unfortified wine 8.5%Sparkling wine 10.0%Fortified wine 10.0%Spirits 10.5%Clear/ malt beer 8.0%Ciders & alcoholic fruit 8.0%Traditional African beer Nil%

15 March 2007Page 3Namibia Budget Review 2007

PricewaterhouseCoopers

Growth percentages

2006 Estimated growth in primary industriesMining 13.6%Agricultures (2.8%)Fishing (0.5%)



Growth percentages

2006 Estimated growth in secondary industriesManufacturing sector 3.1%Construction 7.5%Water and electricity 2.8%

Growth percentages

2006 Estimated growth in tertiary industriesServices 9.8%Wholesale and retail 4.5%Hotels and restaurants 4.5%

Growth percentages

Average GDP growth rate of 4% expected for MTEF period

4.9% GDP growth rate expected for 2007

Annual inflation increase from 2.2% in 2005 to 5.1% in 2006



Budget comparison

2003 2004 2005 2006 2007 2008 2009 2010N$million N$million N$million N$million N$million N$million N$million N$million

Actual Actual Actual Actual Estimate Budget Forecast Forecast

Revenue 10,562 10,836 11,425 12,354 16,209 18,400 16,600 16,900

Spending (11,477) (12,243) (12,493) (12,772) (15,288) (17,800) (17,100) (17,500)

Surplus / (Deficit) (915) (1,408) (1,068) (418) 921 600 (500) (600)

(2.8%) (4.1%) (2.9%) (1.1%) 2.0% 1.2% (0.9%) (1.0%)

Government debt 7,924 10,213 12,642 12,772 13,800 12,500 13,000 14,100

Debt as % of GDP 24.5% 30.1% 33.8% 32.3% 31.4% 24.7% 23.7% 23.9%

GDP 32,309 33,941 37,385 39,502 43,949 50,568 54,808 58,923

Surplus/(Deficit) as % of GDP



Revenue vs Spending

REVENUE vs SPENDING

-

5,000

10,000

15,000

20,000

2003Actual

2004Actual

2005Actual

2006Actual

2007Budget

2008 -Budget

2009 -Forecast

2010 -Forecas

Years

N$

mill

ion

Revenue Expenses



Budget surplus/(deficit)

(2,500)

(2,000)

(1,500)

(1,000)

(500)

-

500

1,000

N$m

illion

2003Actual

2004Actual

2005Actual

2006Actual

2007Budget

2008 -Budget

2009 -Forecast

2010 -Forecast

Budget surplus/(deficit)



Revenue growth

-

5,000

10,000

15,000

20,000

N$ million

Total revenue

2003 Actual N$ million 2004 Actual N$ million 2005 Actual N$ million2006 Actual N$ million 2007 Budget N$ million 2008 - Budget N$ million2009 - Forecast N$ million 2010 - Forecast N$ million



Revenue composition

REVENUE COMPOSITION

0%

10%

20%

30%

40%

50%

Income tax VAT C & E Other taxes

Perc

enta

ge

of to

tal R

even

ue

Average for past 5 years 2008 Budget 2009 Forecast 2010 Forecast



Tax Revenue 2008 - Budget

31%

21%

48%

0%

Income Tax VAT Customs & Excise Other taxes

2007 Estimate

32%

22%

45%

1%

Income Tax VAT Customs & Excise Other taxes



Government debt

GOVERNMENT DEBT

-2,0004,0006,0008,000

10,00012,00014,00016,000

2003Actual

2004Actual

2005Actual

2006Actual

2007Budget

2008 -Budget

2009 -Forecast

2010 -Forecast

N$m

illio

ns

Foreign debt Domestic debt Total debt



Gross Domestic Product

-

10,00020,000

30,00040,000

50,00060,000

N$m

illio

n

2003Actual

2005Actual

2007Budget

2009 -Forecast

GROSS DOMESTIC PRODUCT

GDP Average for the past 5 years



Vehicle birthing certificates – 1 April 2007

As from 1 April 2007, Customs officials at the borders will stop vehicles destined for sale in Namibia and require, apart from other documents, a vehicle birthing certificate.

The vehicle birthing certificate is a certificate confirming the authenticity of a vehicle. The certificates are issued by the Transunion I TC office in Windhoek.



The next PricewaterhouseCoopers Tax update seminar:

Date: 28 March 2007

Venue: Safari Hotel

Topics:

VAT Amendments

Property transactions

Agency principles

Tour operators

Namibia Budget Review 2007*

The 2007/2008 Budget presentationsare available on the

PricewaterhouseCoopers Namibia website

www.pwc.com/na


Upcoming VAT seminar*Don’t miss out!!!!!! Date: 28 March 2007


Albé Botha

Managing Director


In terms of the VAT Amendment Bill 2007 deemed input VAT on used goods (excluding animals) acquired from a non-registered person only inside Namibia may be deducted.

Patty Karuaihe-Martin

Tax Director


In terms of the VAT Amendment Bill 2007 deemed input VAT on immovable property may not be claimed.

Gerald Riedel

Associate Director


In terms of the VAT Amendment Bill 2007 "debt security" is defined and the transfer, allotment, issue, drawing, acceptance and endorsement of debt securities will be EXEMPT from VAT.

Denis Hyman

Manager: International Trade


In terms of the VAT Amendment Bill 2007 a registered person may claim input VAT incurred within a period of 3 year.

Chantell Husselmann

Manager: Indirect Tax


The definition of "passenger vehicle" in the VAT Act will be amended to delete the obsolete reference to a value in terms of the deleted Schedule 2 (higher VAT rate) of the Act.

Carina Oberholzer

Manager: Direct Tax


The VAT Amendment Bill 2007 provides for a new section to be inserted in the VAT Act on Agents and Auctioneers, who will be authorized to issue tax invoices, credit and debit notes deduct import VAT paid, provided certain conditions are met.

Johanna Iiyambula

Manager: Indirect Tax


The VAT Amendment Bill 2007 the provision that a registered person must pay or provide security before Inland Revenue will consider an objection to an assessment will be deleted.

Nerma van der Vyver

Manager: Direct Tax


Importers must indicate transport and insurance costs on customs entries effective from 1 April 2007.

Nellie Brand

Consultant: Direct Tax


The FOB-value will remain the basis for calculating import VAT and customs duties, while the transport and insurance costs are required by Customs for statistical purposes.

Our VAT experts

Contact us

Our VAT experts are waiting for your call

( 061) 2841012

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Growing for the future* 15 March 2007 … · 15 March 2007 Namibia Budget Review 2007 Page 3 PricewaterhouseCoopers Growth percentages 2006 Estimated growth in primary industries