The ministry of Gender, Labour and Social Development has concluded consultations on the National Social Security Funds(NSSF) Amendment Bill 2019 which seeks to tax employers and employees contributions to the fund.
A few weeks ago government tabled before Parliament the bill which sought to exempt the workers contribution to NSSF from taxation and instead tax the members retirement benefits.
Speaking to the media yesterday, the permanent secretary in the ministry of Gender, Labour and Social Development, James Ebitu said that the bill had been submitted to parliament for consideration after final consultations.
He explained that NSSF will receive contributions from the informal sector under the new amendments.
Ebitu said the public had misperceived aspects of the bill but it does not propose double taxation.
“The bill does not propose double taxation as many people think. What is rather being stated here is that all those contributions that have already been taxed as of now will not be subjected to another tax that would be double taxation,”he said.
He said that if the law comes into force, it’s application will see that the money will be given to NSSF untaxed and then the tax will come at the end when members are withdrawing their benefits.
“But that tax is not going to affect the contribution that has already been made as of the time when the law comes into effect. So I want the public to know that there is no double taxation anywhere and there is a benefit in that,”he said.
He said that there will be a demonstration to the public on how the new law will operate.