The government last month pushed through Parliament a law that now requires a deduction of 1.5 per cent from an employee’s earnings, with the employer matching that amount.
The unilateral approach adopted by the government in implementing its controversial social housing programme has earned it little public confidence.
Employers and labour unions still feel aggrieved that the Treasury’s decision to have their members make monthly contributions to the planned National Housing Development Fund was arrived at without sufficient consultations.
The government last month pushed through Parliament a law that now requires a deduction of 1.5 per cent from an employee’s earnings, with the employer matching that amount.
But confusion persists over the finer details, including whether the housing levy is tax-deductible, how a contributor who retires before getting a home benefits and how couples in formal employment will be treated. Questions around the fund’s management and the criteria for allocation of houses to the contributors have yet to be properly addressed as well.
It is difficult to imagine how the housing scheme will succeed with so little buy-in and so much confusion hanging over it.
Manufacturers, for instance, have warned that they would consider cutting staff numbers if the levy ends up eating into their profits. It is important that the government moves with speed to clarify these issues to win the support of key players and boost chances of success.
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