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The Chamber of Mines of Namibia has thrown its weight behind a package of proposed tax reforms, signalling cautious optimism that the changes could stimulate a sector critical to the country’s economy.
The reforms stem from Finance Minister Ericah Shafudah’s budget speech last month, in which she announced plans to table an income tax amendment bill later this year. Among the measures affecting mining companies is a proposal to cap the carry-forward of tax losses at ten years, a significant departure from the current regime, under which losses accumulated during early development phases can be offset indefinitely, even against profitable years.
“The chamber generally supports these amendments, as they are aimed at strengthening economic activity and promoting growth,” said Lauren Graham, Chief Economist, writing in the Chamber’s recently published report.
Alongside the loss-limitation measure, the proposed legislation would make rehabilitation expenditure and corporate social responsibility (CSR) spending tax-deductible, a reform the chamber welcomed as potentially transformative for community investment.
“Recognising such expenditure as deductible will encourage continued and expanded investment in community development, while also incentivising companies that have not yet undertaken CSR initiatives to do so,” noted Graham. The reforms place Namibia within a broader regional shift, as several African mining jurisdictions recalibrate fiscal frameworks to balance revenue capture with the long-term investment horizons that large-scale extraction demands.
