growing for the future* 15 march 2007 … · 15 march 2007 namibia budget review 2007 page 3...
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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
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Growth percentages
2006 Estimated growth in primary industriesMining 13.6%Agricultures (2.8%)Fishing (0.5%)
15 March 2007Page 4Namibia Budget Review 2007
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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
15 March 2007Page 7Namibia Budget Review 2007
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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
15 March 2007Page 8Namibia Budget Review 2007
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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
15 March 2007Page 9Namibia Budget Review 2007
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Budget surplus/(deficit)
(2,500)
(2,000)
(1,500)
(1,000)
(500)
-
500
1,000
N$m
illion
2003Actual
2004Actual
2005Actual
2006Actual
2007Budget
2008 -Budget
2009 -Forecast
2010 -Forecast
Budget surplus/(deficit)
15 March 2007Page 10Namibia Budget Review 2007
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Revenue growth
-
5,000
10,000
15,000
20,000
N$ 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
15 March 2007Page 11Namibia Budget Review 2007
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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
15 March 2007Page 12Namibia Budget Review 2007
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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
15 March 2007Page 13Namibia Budget Review 2007
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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$m
illio
ns
Foreign debt Domestic debt Total debt
15 March 2007Page 14Namibia Budget Review 2007
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Gross Domestic Product
-
10,00020,000
30,00040,000
50,00060,000
N$m
illio
n
2003Actual
2005Actual
2007Budget
2009 -Forecast
GROSS DOMESTIC PRODUCT
GDP Average for the past 5 years
15 March 2007Page 15Namibia Budget Review 2007
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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.
15 March 2007Page 16Namibia Budget Review 2007
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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
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Upcoming VAT seminar*Don’t miss out!!!!!! Date: 28 March 2007
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Albé Botha
Managing Director
PricewaterhouseCoopers
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
PricewaterhouseCoopers
In terms of the VAT Amendment Bill 2007 deemed input VAT on immovable property may not be claimed.
Gerald Riedel
Associate Director
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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
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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
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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
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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
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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
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Importers must indicate transport and insurance costs on customs entries effective from 1 April 2007.
Nellie Brand
Consultant: Direct Tax
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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
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