The Independent Uganda: You get the Truth we Pay the Price
Kampala, Uganda | THE INDEPENDENT | The National Social Security Fund (NSSF) has said that the government should consider leaving the taxation issue out of new NSSF bill, 2019, because of the anxiety it sparked among the savers.
The government had suggested that workers who wish to withdraw their savings at the age of 55 should be taxed. However, if one chooses to wait for five more years up to 60, they would not be taxed. Currently, members who attain 55 years exit the NSSF scheme after a lump sum payment.
But the proposal sparked controversy with many savers claiming this would tantamount to double taxation. Most Ugandans get an average of 15 million Shillings from NSSF at retirement time. A tax on such money was seen as a step to eat into the money for savers at the time they need it most.
NSSF Board Chairman Patrick Byabakama Kaberenge said on Friday that members did not understand the taxation proposals and suggested that the situation should be left as it is.
“People are not very sure [the sort of tax to be applied here]. I say if it is not broken, don’t fix it,” Kaberenge said at the annual members meeting. He added that NSSF is already paying a lot of taxes to the government from the income earned on the savers’ money.
He revealed that last year, they paid 172 billion Shillings up from 150 billion Shillings in 2017 to the government. “If something is that complicated, let us leave it for some time,” Kaberenge said.
Meanwhile, Kaberenge said NSSF was willing to engage the government to be given an opportunity to collect money for the Universal Health Insurance scheme.
He said the Fund already had the structures, currently used to collect pension money, that can be used to collect health insurance money. The Government is currently considering the Universal Health Insurance Bill.
*****
URN
