Nasfund ‘will not support’ move

By DALE LUMA
NATIONAL Superannuation Fund (Nasfund) chief executive officer Ian Tarutia says the fund will not support the Government’s intention to increase profit tax on banks.
Tarutia said if the Government imposed the increase, it would have a negative dual impact on dividend income paid to shareholders as well as valuation of shares.
“We do not support further increases in the tax rate imposed on bank profits,” he said.
“We do not want to see this happen as it will impact the interest and crediting rate we give to members annually.”
Tarutia said Nasfund was in support of BSP’s (Bank South Pacific) group chief executive officer’s comments in the media saying that the increase would mostly impact investors as Nasfund was an investor to BSP.
“BSP is a high performing investment for us in terms of cash income and share value gains,” he said.
“The increase in tax will reduce its profitability and share value, thus negatively impacting its return to us as an investor.
“Our returns to members will be affected depending on the quantum of super profit tax imposed.”
Tarutia said the increase in tax would be a “disincentive” for banks to perform better.
Attempts from The National to get comments from Nambawan Super, another fund who has shares in BSP, were unsuccessful.
However, a spokesperson from the fund said: “We will be unable to make any comments at this stage until we get more details about the new tax changes.”