Superfund members losing K317mil from levy this year: Taylor

THE Government should really consider the impacts of the market concentration levy as it will effect superannuation funds like Nambawan Super Limited (NSL), deputy chairperson Dame Meg Taylor says.
Taylor said in Port Moresby yesterday when presenting the results of the 2021 financial year that the Market Concentration Levy to be imposed on the banking and telecommunications sectors would lead to all super fund members losing over K317 million in asset values and reduced dividends, in just the first year.
A key challenge that the fund is mindful of is the intention of the State to impose unfavourable tax reforms which will diminish returns to members including a possible Capital Gains Tax (CGT) and the already legislated Market Concentration Levy.
“The CGT would be unfavourable for Superannuation contributors if special concessions aren’t applied for super funds,” she said.
“We have already called on the Government to repeal the market concentration levy to be imposed on the banking and telecommunications sectors as it would lead to all super fund members losing over K317 million in asset values and reduced dividends, in just the first year.”
She said after considering the immediate impact on BSP’s price to earnings ratio and the resulting value erosion, it was estimated that in the first year alone, the members’ crediting rate could be reduced by as much as two per cent which translated to about a K160 million loss of members’ returns.
“Nambawan Super already pays substantial taxes and many of our investment business are also already highly taxed. We are not looking for special treatment, we are simply asking for fairness in protecting our members’ retirement savings,” Taylor said.