THE superfund industry in the country has unlawfully taxed the employees’ contribution in the payment of entitlements thus far.
The employee component is non-taxable.
Wages tax is one of the deductions including superfunds contribution.
The non-taxable element of the superfund is the employee’s contribution and should never be taxed.
The employer’s component is a taxable component.
There is an illegal lingering fraud executed by the superfunds to apply a blanket tax on entitlements.
This is double-dipping into the savings of an employee.
The detail of the tax calculation formula smeared should detail the taxing model.
This systematic tax flaw conveys a conspicuous element of double-dipping in goods and services tax (GST) from the net of the income tax.
Income tax is a primary revenue source for a government and the Government ought to value its workforce instead of taking advantage of them in an unwarranted and profligate tax scheme.
For employees, this enduring trend is a horrendous nightmare and spirit the spirit of efficiency in the workforce.
Because of our progressive tax system which is common in developing nations, the more one earns means that more tax has to be paid.
The Government needs to prioritise refining the organised defect in the tax administration installed.
The Superannuation Act direly needs review to sound alarm on the silence of having blanket taxing on the settlement of superfund entitlements.
The tax regulator should eliminate GST for employees.
The commitment shown by the Internal Revenue Commission commissioner general Sam Koim to crack the whip on some of those grey areas in our tax regime is exceedingly extolled and reinforced.
The Government is converging on growing the nation’s tax base such as small to medium enterprises which is a great stride onward.
It will be uplifting to see that the Government is engrossed on cultivating and transforming our tax system.
David Kawage Bitno