The party says private security companies are in arrears of R6 billion while municipalities are in arrears of a billion rand.
The two-pot system came into effect at the beginning of this month. It allows workers to cash out a maximum of 10% of their retirement savings annually, up to a maximum of R30 000. “There was not enough public education on the tax implications of the two-pot system. So, workers think they will get a maximum of R30 000 whereas they will be taxed and they will receive about R19 000 if we use the calculator that SARS has put up on its website. And of course, insurance companies as well are making major profits from these withdrawals.
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