Cosatu proposes lesser tax regime for low-income workers

The Congress of South African Trade Unions (Cosatu) says it has proposed a lesser tax regime for low-income workers who want to access their funds.

This comes as the implementation of the two-pot pension system will be effective from September 1.

The 2024 Revenue Laws Amendment Bill was recently published for public comment.

The Bill is expected to allow for further pension reforms.

Cosatu says it also wants the system to allow workers to access funds for education and in cases in which people lose their jobs.

The Union’s Parliamentary Co-ordinator, Matthew Parks says, “So, we already have engagements about the next amendments which includes when a worker loses his job, they have access to everything.”

“We also made a few proposals, can we make the tax regime a bit more favourable to low income workers.  Let it not be a burden to them. Can we also allow workers to have more access to their existing savings beyond September and could we look at allowing workers access to the pension fund to fund education because education is an investment in your child, to your own career.”

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