Namibians will face very serious tax reform measures such as a 4.5 percent VAT increase, a tourism levy and an increase in excise tax on top of a 20-25% donations tax and an estae duty of 20 to 25%, some of it to be already introduced from the next financial year onwards. In the latest edition of "Tax News" compiled by a leading financial company in Namibia, which is part of a tax consortium to review the taxations system, it was further stated that every Namibian citizen from the age of six should receive "a universal income grant of at least N$ 70 per month". This was recommended due to the fact that the Gini coefficient for Namibia stood at 0.68, a measure of inequality. "The proposal is is that this grant be funded by an increase in VAT of a suggested 4.5%, a tourism levy and an increase in excise tax", the experts recommended. Although not mentioned in this circular, Cabinet recently in principle approved another levy, the introduction of an orphan levy.

Former finance minister Nangolo Mbumba already in his budget speech of March 2002 announced a tax reform, which he repeated this year.

According to "Tax news", transfer pricing legislation should still be introduced this year. To counter the charging fees by foreign head offices and parent companies, a 10 percent final withholding tax is to be imposed on all foreign management fees. Namibian partnerships are to be ring-fenced fro taxation in Namibia. "Thin capitalisation is to be introduced to counter the use of foreign loans to transfer revenues in the guise of interest payment", the newsletter re-commended. Taxation for salaried individuals could shift to a schedular form.If approved by the government, a withholding tax of 10 percent on interest paid by any financial institution, to any individual, to be withheld by the financial institution on a monthly basis. Good news is that farmers might have their deduction allowed for the construction of employee housing – so far N$ 15 000 – increased to N$ 50 000, which they in future might deducted from their annual income.