GIVE THE CREDIT UNIONS A BREAK.
Independent Senator Tony Marshall made this suggestion yesterday, saying that credit unions should have been exempted from a new tax on banks, credit unions and insurance companies – or at most face a lower tax.
The former senior executive banker said that some 90 per cent of the credit union membership, which was estimated at 160 000, comprised people “at the bottom of the totem pole”.
He argued that the new tax measure would deprive such people of a better share of the credit unions’ profits at the end of the year.
Marshall was commenting on the Tax on Assets Bill, 2015, which will put a 0.20 per cent per annum levy on some businesses, starting at total assets of $40 million.
Leader of the Senate Maxine McClean introduced the bill as part of the measures announced by Government in 2013 “to bring this economy back to a level of recovery”.
She said that given the state of the economy, credit unions as well would have to “share in the burden”.
However, Marshall said if sharing the burden to keep the economy afloat was the intention, then the credit unions were being “disadvantaged”.
He indicated the commercial banks could be asked to share more of the burden, not being locally owned. “. . . They must pay their way in this country to enjoy the facilities, the infrastructure, the communications that we can give them,” he commented.
Marshall said figures given to the senators suggested that the overall contribution of the credit unions to the total asset base of the country was eight per cent, whereas the commercial banks had a total of 60 per cent.
Marshall said while he supported the bill, he felt “a bit more consideration could have been given to the credit unions”.
He said it was a good thing that the tax was intended to be a short-term measure, lasting just a year. (TY)