Just as we are gearing up for the Retirement Reforms, it appears that minds have yet again been changed. According to a report, the Minister of Finance called an urgent meeting on Monday 15 Feb, to discuss the provident fund annuitisation elements of the Taxation Laws Amendment Act, 2015 and it was apparently decided that this could now be postponed for up to two years. Tax deductions for will initially remain but if no resolution is reached within the next 2 years, the contribution deduction limit for provident fund members will be reduced.
A document summarising Treasury’s proposals is to be sent out. The Minister will then take these proposals to other Labour constituencies who were unable to be present at the meeting. If the proposals are acceptable then Cabinet will be consulted and they will be announced in the Budget Speech on 24th. Amendments to the Income Tax Act will then need to go through Parliament.
As soon as I have further confirmation, I will let you know.