By: Ketemba Tjipepa

Finance Minister Iipumbu Shiimi says the new tax regime will reduce companies’ taxes to encourage the hiring of interns. 

Shiimi spoke at the information center in Windhoek on Thursday regarding the recently amended tax laws.

He explained that the tax incentive for employers aims to help recent graduates gain skills and improve their job prospects. 

“One of the changes is, we have also made an allowance to incentivise employers to take in interns,because we are worried about people leaving universities and vocational centres, but they are unable to get internships. So, one of the things we have introduced is tax incentives, which say if you are an employer, and you are going to take in an intern you are going to pay an allowance.We are going to deduct 50% of that allowance from your tax liability. So, we are practically reducing your tax by 50%,” said Shiimi, while adding that the initiative encourages employers to hire interns

The minister added that this support can enhance the chances of youth finding permanent employment.

“We can equip our  people who are leaving tertiary institutions with practical skills, they can become more employable and they can find jobs. That’s really the idea behind it. So that’s one of the amendments that have been made in the new Income Tax Act.But I’m not hearing Namibians talking about it. I’m only hearing Namibians talking about tax refunds,” remarked Shiimi.

Shiimi urged employers to take advantage of the newly introduced tax incentive to benefit their businesses and develop a skilled workforce.