The retirement or retrenchment package amounting to 300-thousand Namibia dollars will be exempted from being taxed, in accordance with the Income Tax Amendment Bill.

Tabling the Bill in the National Assembly yesterday, Finance Minister Saara Kuugongelwa-Amadhila said the exemption has been increased from 100-thousand to 300-thousand dollars since the tabling of the 2009/10 budget last year.

The tax deduction on rehabilitation expenditure on mining companies has been abolished, while tax on non-mining companies has been decreased from 35 percent to 34 percent.

The threshold on income tax payable by individuals has been increased.

Those earning up to 40-thousand dollars will not be taxed, while those earning between 40-thousand and 80-thousand will be taxed 27 percent.

Those earning between 80-thousand and 200-thousand will be taxed 32 percent.

People earning between 200-thousand and 750-thousand dollars will be taxed 34 percent, with those earning above 750-thousand dollars being taxed 37 percent.

Also in yesterday's session, the Deputy Minister of Finance tabled an amendment to zero-rate medical and paramedical services, along with funeral undertaking services.

Tabling the Value-Added Tax Amendment Bill,  Tjekero Tweya said the elimination of V.A.T on some food items and services was done to assist low income consumers.

Tweya said the effect of the global financial crisis on Namibia called for domestic interventions.

Other items that are being zero-rated include brown and white sugar, as well as fresh milk.

Some MP's wanted to know from the Deputy Minister if mechanisms would be put in place to ensure that suppliers adhered to the law.

Finance Minister, Saara Kuugongelwa-Amadhila said her ministry had auditors that inspected businesses.