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The National Pensioners Association (NPA) has kicked hard against the new tax regime that will take 15 percent off Pensioners savings with the Social Security and National Insurance Trust (SSNIT).

According to the provision captured in the Income Tax Act (2015), Pensioners who want to access their pension contributions before they are due for retirement will be taxed by up to 15% off the amount they withdraw.

The tax, however, does not apply to pension benefits of pensioners.

Mr. Benjmin Asuman, a senior negotiator for the NPA expressed his disappoint with the new arrangement when he spoke to Joy News in an interview yesterday.

He said that as a key negotiator for the NPA one would expect that he was consulted on this matter but in this case, the reverse is true which doesn’t show good faith and good will even if it is necessary to introduce that policy at this time.

He observes that the new tax would further lower their already meagre pension benefits.

“I don’t think it is fair. It is not fair at all. In the first place our pension keeps running down as a result of inflation. Evidently we are not benefiting from the economy in any way. We have contributed all over the years and if it should be taxed again it is not fair at all,” Benjamin laments

He said, it’s difficult to come to terms with government’s decision to tax pension savings because it is not done in many countries.

The new tax regime, part of the recently introduced Income Tax Act (2015) will also see allowances taxed – a move that analysts say is part of a broader government policy to ramp-up the state’s dwindling coffers.

Meanwhile, Finance Minister Seth Terkper has also explained himself away saying that the new tax regime on allowances and pensions comes under the new income tax law because they are all forms of income irrespective of how they are earned.

Mr. Terkper said, this has become necessary because some tax payers have been evading tax by shielding their incomes under the previous regime that had many loopholes.