By Jolly Gwari
Besides, the storm that has been making rounds on social media about the government proposal to tax NSSF member’s benefits, the Managing Director of the National Social Security Fund (NSSF), Mr. Richard Byarugaba calls it a progressive one. According to Byarugaba the Fund welcomes and supports the Bill.
He explained that under Uganda’s current tax regime on pensions and retirement benefits, a member’s contribution is taxed at the deduction of payroll, NSSF income is taxed when earned and the members’ Benefits are exempted from tax. He further explained that when the NSSF Amendment Bill, 2019, becomes law, member contributions will not be taxed, and NSSF income earned will not be taxed “However member Benefits will be taxed at the point of withdrawal.
Should a member attain the age of 60 years their Age Benefit will not be taxed. Other benefits that will not attract tax include the Invalidity and Survivors Benefits,” Byarugaba said.
Some of the comments on Face book
Martin Muganzi In the U.S, benefits are taxed at withdrawal and it’s clearly better that way. What should be cross-examined is double taxation because as you know, Ugandans don’t read the details of these bills, they go with the surface information. The MPS needs to clearly read the bill to ensure that there is no tax at the point of depositing to NSSF. That’s when it will make sense and be of benefit to workers.
Isabella Angella Grace Kirabo Shawn please explain how I benefit from this. Cos my little knowledge is seeing benefits being taxed at withdrawal yet they weren’t being taxed before. Also, does this mean PAYE is going to be calculated on the 95% of my salary less the 5% NSSF Contribution? How do they plan to execute not taxing member contributions at the payroll level?
Nicholas Kamusiime · Who brought that clause? He must even be a noncontributor! Stop being selfish, we do not save so that government earns money from us for political ambitions, we save for the better retirement. Someone has paid taxes for over 40years of his work life and you even want to tax his hard-earned saving at the end!!!! I know you are interested in the little interest you give us. Then tax that alone
Kakeeto Vic · How is it going to benefit the savers after taxing the 10% which hasn’t previously been taxed?Count some sense in us while explaining trash to us
Odeke J Julius the major issue in the bill is taxing the benefits. Am wondering why you say the members will earn more when government also will be earning more tax. The truth is government will now be taxing even the 10% employer contribution