Grave concerns on pension tax exemptions

Grave concerns have been raised about the unfairness of the amendment to the Income Tax Act 1959, exempting judges' pensions from being taxed.

Ialibu Pangia MP Peter O’Neill who opened the debate on this amendment says alot of public servants have been asking for decreases or cuts to their personal income tax due to the high cost of living in the country.

He says this move to look after a select group of people is unfair to everyone.

Mr. O’Neill added that as members of the community, everyone including judges when they retire are obligated to also pay for the country’s well-being which includes paying taxes.

The Ialibu Pangia MP instead recommended for judge's packages to be increased, adding that the argument that judges can’t find employment elsewhere after retirement is a poor one:

Mr. O’Neill also raised issue about the proposed amended bill, which was a money bill and should have been presented by the treasurer instead of the Justice Minister:

Juffa calls for public servant's retirement benefits to be exempted

Northern Provincial MP Garry Juffa has called for the Government to consider exemption of taxes for public servant's retirement benefits.

Mr. Juffa made these remarks while debating the amendments to the Income Tax Act 1959, exempting judges pensions from being taxed.

He says public servants are also duty bound like judges to not engage in business activities and if judges' pensions are exempted from being taxed, it was only fair for this move.

Judges pension exempt tax

Attorney General and Justice Minister Pila Niningi with support from members of parliament today succeeded in amending the Income Tax Act 1959, which exempts judge's pensions from being taxed.

Despite concerns from several members including Member for Ialibu Pangia Peter O’Neill and Northern Provincial MP Garry Juffa on the unfairness of the amendment, it saw an overwhelming support from the house, passed through voices.

Mr. Niningi in his speech to Parliament today, says judges are limited from associating with the public and other persons to avoid conflicts of interests.

He added that they are restricted from engaging in employment with other private or public entities until they retire at the age of 72: