COSATU presented its submission on the Revenue Laws Amendment and Taxation Laws Amendment Bills to Parliament today

The Congress of South African Trade Unions (COSATU) presented its submission on the Revenue Laws Amendment Bill (RLAB) and the Taxation Laws Amendment Bill (TLAB) to Parliament’s Select Committee: Finance today.  Key proposed amendments COSATU made for Parliament’s consideration and adoption include:

  • Amending the Draft RLAB to provide for the following urgent interventions for the Two-Pot pension reforms which came into effect on 1 September:
    • Ensure that workers who lose their jobs are able to access their full savings, including their preservation pot; so they can save their homes, cars and belongings; and take care of their families whilst looking for work.
    • Allow workers to transfer funds from their existing funds in their vested rights pot to their preservation and savings pot; enabling them to tap into greater relief to settle debt and other financial emergencies whilst simultaneously boosting savings.
    • Explore ways to lower the tax burden on low-income workers, in particular those below the income tax threshold and in lower income tax bands.
    • Allow workers to utilise savings for education fees as this is this an investment in their and their children’s career path, earning potential and retirement savings.
    • Capacitate the Financial Sector Conduct Authority to set caps on fees charged by pension funds on their members.
  • Requiring Treasury and the Department for Mineral and Petroleum Resources to return to Nedlac to engage in good faith with COSATU and Social Partners on ways to reduce the fuel price regime and expand the basket of essential food items and goods exempt from VAT to give invaluable relief to the poor, workers, commuters and the economy.

COSATU trusts that its proposals, which will provide decisive help to millions of struggling and highly indebted workers, will be embraced by Parliament and Treasury.  These are urgent and substantial matters that have also been called for by the President Cyril Ramaphosa and the Ministers for Finance, Mineral and Petroleum Resources.  Workers, their families and communities are in desperate need of support.  It is critical that Parliament and Treasury respond decisively to their calls for help. 

Issued by COSATU

Please contact for further comment Tony Ehrenreich at 082 773 3194 or Matthew Parks 082 785 0687.