COSATU reiterates call for tax-free retirement fund withdrawals
COSATU general-secretary, Solly Phetoe, said that the tax imposed by SARS was unfair.
- Congress of South African Trade Unions (COSATU)
- Two-pot retirement system
- South African Revenue Service (SARS)
COSATU in the Western Cape hosted its Workers' Day rally at the Castle of Good Hope in Cape Town on 1 May 2025. Picture: Ntuthuzelo Nene/EWN
CAPE TOWN - Trade union federation COSATU has reiterated its call for tax-free retirement fund withdrawals.
COSATU general-secretary, Solly Phetoe, made the call while addressing a large crowd of tripartite alliance supporters gathered at the Castle of Good Hope to commemorate Workers' Day.
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— EWN Reporter (@ewnreporter) May 1, 2025
A group of tripartite alliance supporters are gathered on the grounds of the Castle of Good Hope. They’ve braved the cold and wet Cape Town weather to participate in Cosatu Labour Day event @NtuthuzeloNene pic.twitter.com/Iu5TNQrUaK
According to the South African Revenue Service (SARS), more than R43 billion in retirement funds has been withdrawn from the two-pot system since its establishment in September last year.
The South African Revenue Service said it had collected more than R11 billion in taxes from the two-pot retirement withdrawals from more than two million retirement fund members.
Phetoe said that the tax imposed by SARS was unfair.
"COSATU is now engaging Treasury that the next round, there must be no tax to the two-pot system because workers, you take your R30,000, but you only get R17,000."
SARS has been urging individuals to only use their withdrawals for essential needs rather than wants.