Increased consumer spending expected in October

As from today and going forward towards the end of October, many Namibians are due to lay their hands on a financial windfall courtesy of the Namibian tax authorities. Many companies were, in fact, already able to pass on the deemed benefit to their employees at the end of September, even though the announcement was only published in the Government Gazette late in the month.

While there are still readers who are puzzled by the prospect of tax relief that directly benefits the consumer, the benefit is relatively substantial.

Finance minister Ipumbu Shiimi last month instructed employers to reimburse employees with the amount that exceeds the rightful pay-as-you-earn (PAYE) tax deduction, backdated for the past months that relate to the annual taxation period ending in February 2025. So, this weekend will probably witness the start of a month that is likely to see bigger consumer spending on account of the tax relief, brought about by the easing of the taxation thresholds in Namibia.

While the first cash benefits are the result of governmental institutions reimbursing their employees for tax previously deducted, other institutions are likely to follow suit as this month’s salary payment intervals begin around 15 October and are likely to peak by the weekend of 31 October to 2 November.

In this vein, Network Media Hub recently joined hands with Synergi Namibia to provide a taxation calculator. So, if you're yet to receive your tax refund and are keen to know how much will be deposited into your account, send #Refund to the Synergi chatbot at 085 785 6231 and follow the prompts. Residents are urged to spend this windfall wisely, and to keep in mind that the festive season is approaching fast.