Government puts brakes on new tax laws
Government says the implementation of the new tax laws will not go ahead for now.
Minister in the Presidency Jeff Radebe has announced that Cabinet now plans to table legislation that will postpone the implementation of laws by two years.
The Tax Administration Laws Amendment Act and The Taxation Laws Amendment Act were signed into law by President Jacob Zuma last month.
The laws which were due to come into effect on March 1 are designed to allow people who retire or resign to only withdraw up to a third of their pension investing the rest in annuities.
Trade unions and other organisations have been opposed to the new laws saying workers should not have to be told how to spend their money.
The SACP's Alex Mashilo says they welcome the announcement.
"This was going to be a problem because workers need to be covered in the event they lose their jobs. So the law was signed without comprehensive social security put in place to provide for that coverage. So this is welcome news indeed," he said.
Trade union federation Cosatu had been planning mass action over the laws.
(File photo: Getty Images)