Namibia reviews VAT zero-rating on sugar and considers import VAT relief for agriculture

Namibia's government is reviewing the zero-rating of VAT on sugar to address health concerns and is considering zero-rating import VAT on agricultural inputs to reduce production costs.

Namibia's Finance Minister Ericah Shafudah announced a review of the zero-rating of value-added tax (VAT) on sugar consumption during the 2026/27 mid-term budget presentation. The policy, initially aimed at consumer relief, is being reconsidered due to the health implications of sugar and the government's commitment to promoting healthy living.

Additionally, the government is exploring the introduction of import VAT zero-rating on agricultural inputs and equipment to lower domestic food production costs, recognizing agriculture as a key economic sector. These tax policy reviews are part of broader reforms to strengthen revenue mobilisation and reduce borrowing reliance.