Tuesday, 23 February 2016 14:00

BIBC calls on Minister to set the record straight on Tax Amendments

The Building Industry Bargaining Council has called on Finance Minister Pravin Gordhan to set the record straight on harmful myths and misconceptions about new tax amendments during his budget vote speech this week. Because there is a lot of confusion on the ground about the proposed amendments, some employees have already taken drastic but unnecessary action, such as resigning, because they fear they won't be able to access their funds after March 1.

The BIBC:

  • Welcomes the two-year delay in the introduction of the compulsory annuitisation of two-thirds of provident fund savings on retirement.
  • Notes that some workers have resigned and that others are considering doing so.
  • Is concerned that the unprecedented wave of retirement industry compliance over the past two years may be negatively impacted because of misstatements and misinformation currently doing the rounds.
  • Calls for clear communication on this matter from the minister, as well as a comprehensive education campaign targeted at employees.
  • Will also communicate to its members to provide greater clarity and reassurance.