Implementation of new tax law postponed
The implementation of the new tax law will be postponed until 2018.
Minister in the Presidency Jeff Radebe made the announcement on Thursday during a press briefing following the fortnightly Cabinet meeting on Wednesday.
Radebe said government would be meeting with critics of the Taxation Laws Amendment Act, which include ANC alliance partner, the Congress of South African Trade Unions, for further consultations.
“It is apparent that despite the extensive consultation processes which were embarked upon before the law was passed that those concerns still exist and that those concerns have to be addressed urgently to ensure that when the law commences the changes to the provident fund benefits will be implemented smoothly and efficiently.
For that reason, Cabinet has decided to table a legislative amendment to the Taxation Laws Amendment Act as a matter of urgency to postpone the commencement date from 1 March 2016 to 1 March 2018 to allow for further consultation with all key stakeholders,” said Radebe.
The new law, which would have come into effect on March 1 2016, seeks to force workers to preserve their retirement savings, instead of withdrawing and spending it. - ANA