Tax relief for pensioners | Public Eye Daily

By Billy Ntaote

MASERU- Parliament last Friday passed a Bill that would see pensioners receiving tax exemptions on 25 percent of their terminal benefits.

Commending the ?giant step? taken by finance minister Timothy Thahane that resulted in the passing of the Bill, the Lesotho Workers? Party leader Mr Macaefa Billy said the exemption would go a long way in assisting lowly-paid textile industry employees when they eventually retire.

?Initially, we were seeking the Minister to come-up with special legislation that would see factory workers? severance pay not being taxed, as they are among the lowest paid employees in this country. But this legislation is still most welcome,? said Billy, when addressing the august house.

According to Billy, workers in the textile sector had always complained that they ?go home with nothing due to the heavy taxation of their pension.?

?That is why this Bill is such good news.?

The caretaker president of the National Independent Party, Mr Kimetso Mathaba, in his address before the House, said the passing of the Bill would ?change lives?.

?All pensioners will rejoice when they hear about this good news. I believe we should strive to ensure the pensioners? lives are more comfortable by eventually removing all the taxes they have to pay,? said Mathaba.

The Lesotho Congress for Democracy member of parliament, Mr Nkhet?e Monyalotsa, also commended minister Thahane for delivering on the promise he made in last month?s national budget speech?that of alleviating the pensioners? burden.

Meanwhile, according to a ministerial brief on the Bill, the finance ministry Principal Secretary, Mr Mosito Khethisa, pointed out that pensioners had, for quite a long time, complained about the heavy taxation of their terminal benefits.

?The Bill attempts to exempt from income tax, 25 percent of employees? basic salaries earned throughout their service. This plan shall be effective on the coming into effect of this legislation, and will enable pensioners to set-up income-generating projects, with a view to improving their standard of living,? Khethisa said.

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Source: http://www.publiceye.co.ls/2012/02/27/tax-relief-for-pensioners/

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