Superannuation members shouldn’t be taxed: Smare

SUPERANNUATION contributions should not be taxed, Nambawan Super Ltd chairman Anthony Smare says.
Smare said Nambawan Super Ltd believed that there should be some relief given to the members at some stage.
“We think that your money going in and out should not be taxed, especially if it’s tied to a retirement savings account,” he said.
“Superannuation is taxed when contributions are put in, during a financial year, when profits are made and when it is taken out when members retire.”
He said in countries such as Australia and New Zealand, one or two of the three components are left un-taxed. “In some countries in Europe, all three components are not taxed. In Papua New Guinea all the three components are taxed. Even if it is a lower amount of two per cent, it is still taxed.”
Smare said members needed to be treated fairly, comparable with other countries in the world.
“It makes a big difference to your superannuation when 15 per cent of it is not taxed which is the amount that’s currently being taxed,” he said.
“Just by saving K10 in tax a week or K20 a fortnight will translate into a K63,000 increase in your retirement balance when you retire, which is a big amount to receive.” Smare said income tax contributes 22 per cent of the government budget but the workers who contribute tax are less than 10 per cent of the population.