Economic growth for 2025 was approximately 2.9%, down from 3.3% reported in the mid year budget review.
The expected inflation for 2025 is around 3.5%, supported by lower global oil and food prices.
Revenue for the 2026/27 is estimated at N$89,8 billion and expenditure (excluding debt servicing) is estimated at N$87.8 billion.
Debt to GDP ratio climbs to 67.8%
Total interest payments are estimated to be N$16.2 billion in FY2026/27, rising from N$14.3 billion in FY2025/26
SACU receipts are estimated to be more than initially anticipated and is expected to come in around N$24.3 billion (before adjustments).
N$1.7billion has been budgeted to enhance salary structures of civil servants and implementation is set to play out over a two year period with a large number of of employees receiving a 5% base salary increase.
Tax policy proposals
| Capital allowances in terms of the Income Tax Act will be reviewed to better align depreciation rates with business and investment growth, particularly to accommodate the assessed loss limitation rules introduced in 2024. |
| Updating of income tax brackets and tax thresholds for individual taxpayers to account for inflationary adjustments and improve fairness. |
| Review and update the Special Economic Zone tax regime to provide for incentives that will ensure compliance with international regulations. |
| Amendment of the Petroleum Taxation Act of Namibia to reflect new developments in the expanding industry. |
| Amendments to the VAT Act to bolster priority sectors (e.g. agriculture input imports and the creative industry) |
| Introduction of e-invoicing and modernising the VAT Act to improve clarity on legislative interpretation. The VAT zero rating provisions may also be revised to look at the “Zero-rate” basket |
| Introduction of a Corporate Social Responsibility contribution tax incentive. |
| Taxation of international sporting events will be a new focus to ensure that the taxation and revenue collection therefrom is streamlined, and incentives and simplicity work together to ensure revenue is collected without hampering the promotion of tourism and investment. |
| Introduction of group relief legislation specifically in the property industry that will allow for restructuring (including mergers and acquisitions) to happen on a tax-neutral basis. |
| A mandatory disclosure regime is to be introduced regarding aggressive tax planning structures to align with BEPS Action Point 12. This will enable Namibia to quickly respond to tax risks, as such information will be available early. |
| Introduce anti-avoidance measures for hybrid arrangements that erode the Namibian tax base. |
| Update the taxation of fringe benefits to reflect current compensation practices, provide guidance on the balance between cash and non-cash remuneration, and strengthen compliance (i.e reviewing benefits such as car allowances) |
| Explore additional levies in the fishing industry where the average corporate tax rates are below average |
Important announcements
| The Namibia Investment Promotion and Facilitation Bill has been open for public consultation and is currently under detailed review to ensure investment promotion and facilitation is adhered to and aligned to international best practices. |
| The National Equitable Economic Empowerment Framework (NEEEF) is bound to surface again and public consultations will commence on 2 March 2026 facilitated by the Office of the Prime Minister |
| The Special Economic Zones (SEZ) regime is a key part of future industrial growth. The SEZ Bill is currently under legal review and will be presented in Parliament later in the year |
| The Income Tax Amendment Bill is currently under legal review and is set to be presented in Parliament during the second quarter of 2026. |
| Government is committed to restore a positive primary fiscal balance and in this way gradually bring the debt-to-GDP ratio down to the SADC benchmark of 60% debt to GDP ratio. |
| The National Housing Enterprise has secured N$1.5billion in funding to facilitate the expansion of housing development projects by delivering around 2,300 houses over the medium term. |
| Fuel levy revenue collected will be allocated to the Road Fund Administration to finance construction and the rehabilitation of important road infrastructure. This is estimated to be in the region of N$2.4billion |
| Tax refunds of totalling N$9.8billion has been processed over the last 11 months. NAMRA is aiming to improve operational efficiencies to reduce refund turnaround times. |
| No extension will be granted on the current tax amnesty programme and this initiative will finish on 31 October 2026. |
