Budget: Clear Communication On Retirement Tax Amendments Crucial - Bibc
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Company Announcement - The Building Industry Bargaining Council welcomes the mooted two-year delay in the introduction of the compulsory annuitisation of two-thirds of provident fund savings on retirement, but says it is vital that Finance Minister Pravin Gordhan sets the record straight on harmful myths and misconceptions about new tax amendments during his budget vote speech on Wednesday.
“There is a lot of confusion on the ground about how the new tax regulations will impact employees, and we have already seen resignations from workers who are concerned about a perceived negative impact on them, as they believe they will not have access to their money after March 1,” says Ronel Sheehan, CEO of the Building Industry Bargaining Council (Cape of Good Hope).
“There has been an unprecedented wave of retirement industry compliance over the past two years, but we are concerned that these gains could be negatively impacted by the misstatements and misinformation currently doing the rounds. What is required is clear communication on this matter from the minister, as well as a comprehensive education campaign targeted at employees.
“We are also in the process of drawing up communiqués to our members, which will be distributed once greater clarity is obtained,” she says.
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