Dausabea’s call to remove tax on retirement benefits garners support

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in Auki

A former SINPF financial member Henry B Kahui has supported the call by Mr Charles Dausabea to consider withdrawal of the tax policy on retirement benefits for public servants.

Former MP Dausabea made the call last week in an appeal for SINPF to deliberate on reforming the policy for the interest of its members.

Mr Kahui also suggests amendment be made to the policy.

He said the tax policy, which has been going on for decades, has only disadvantaged NPF members.

Kahui said the policy hinges on unfairness for the hardworking public servant who has saved up after being initially taxed.

He said it also shows government’s little appreciation for the service rendered by the retiring public servant.

“The government should feel that after its servants had saved the country for that long, the benefit should be given to them in full and not for government to claim share in it.

“Another area to consider is if the government finds it hard to withdraw the tax, they should only impose minimal tax rate on the retirement benefits.

“Like when I retired some 10 years back, the government taxed me up to 45 percent.

“This is a real scenario happened to me and at the end the government just took back what she supposed to reward me for the service I did,” Kahui said.

He stressed that there is a need for an amendment on the policy and government should do something about it.

Kahui also said that government should focus on more development for the country to collect taxes from rather than heavily relying on taxing its people.