Swapo member of parliament Elder Filipe has proposed tax relief for pensioners under a proposed motion to review retirement benefit taxation tabled in the National Assembly this week.
Filipe is calling for the parliament to consider exempting qualifying retirement benefits from income tax, arguing that pensioners should enjoy financial security and dignity after decades of work, sacrifice and tax contributions.
He said retirement should provide one with peace of mind rather than additional financial pressure.
“We must also ask whether our retirement tax system is fair and whether it adequately protects people when they finally access the retirement benefits accumulated through years of work, sacrifice and contributions,” Filipe said.
While acknowledging the state’s right to collect taxes, he argued that the taxation system should be structured fairly to protect pensioners.
His motion calls for a review of the legislative and policy framework governing pension, provident fund, retirement annuity and other qualifying retirement benefits.
The review would examine how retirement contributions are treated during a person’s working life and how benefits are taxed when accessed.
Filipe also wants the parliament to consider alternative approaches to the timing and structure of retirement taxation to encourage long-term savings and strengthen pensioners’ financial security.
The proposed review would assess the social, economic and fiscal implications of providing greater tax relief or exempting qualifying retirement benefits from income tax.
Filipe proposed referring the matter to the relevant parliamentary standing committee for further investigation and consultation with stakeholders before reporting its findings and recommendations to the National Assembly.
