Don’t tax entitlements: Tarutia

By DALE LUMA
NATIONAL Superannuation Fund (Nasfund) chief executive officer Ian Tarutia says tax should not apply to entitlements paid to members who are at the retirement age of 55 and no longer working.
Tarutia told The National that the current two per cent tax on employer contributions and return on investment should be removed.
He said superannuation was about savings and superannuation payments were reduced as a result of the tax.
“Our view on tax on superannuation entitlements is that no tax should apply on the entitlements that are paid to members,” Tarutia said.
“Especially for members who have attained retirement age of 55 years and are no longer actively employed. Currently tax is two per cent on the employer contribution and interest earned from investment returns. This two per cent tax should be removed.
“Members already pay salary wages tax while they are working and the fund pays 25 per cent company tax as a corporate entity.
“This is sufficient tax revenue collection already.
“Superannuation savings is about providing retirees or members an ample pool of funds to live a quality life and not have to rely on others after active employment.
“This will not be achieved if superannuation payouts are reduced by tax.”
Giving an update on Nasfund’s progress amid the Coronavirus (Covid-19) pandemic, Tarutia said Nasfund had an effective business continuity plan as well a strong enforcement of the “Nuipela Pasin” protocols.
“So far, we have managed to keep all staff nationwide safe with 67 per cent of staff vaccinated,” he said.
“The objective is to have all staff vaccinated by December.
“A fully vaccinated workforce means a scale up of herd immunity and protection against the severity of Covid-19 if one becomes infected.”