NCE welcomes proposed EPF, ETF merger move

National Chamber of Exporters (NCE) yesterday commended t he proposed move t o merge t he t wo superannuation funds—Employees’ Provident Fund (EPF) and Employees’ Trust Fund (ETF).

The two funds collectively account for more than Rs.1 trillion.

“Through this move, it is envisaged that employees who run small business entities will be able to benefit, by obtaining assistance from the huge combined fund.

Further, it is envisaged t hat t he operations related to the combined fund will be assigned to professional fund managers who will ensure the prudent management of the fund related to its i nvestment, t o enable private sector employee to reap optimum returns, since questions have been raised regarding the management of the two separate funds in the past, resulting i n t he eroding of t heir values.,” NCE statement noted.

The chamber is of the view that the proposal when i mplemented will not only benefit private sector employees, but will also enable export enterprises to reduce their staff costs and other administrative costs as well as the time expended to prepare documents and returns to two separate institutions by not having to assign separate staff for the purpose.

NCE said it proposed this move when submitting budget proposals of the Chamber for 2014. Further, it was also suggested that a similar approach be adopted with regard to Nations Building Tax (NBT) and Value Added Tax (VAT).

The chamber hopes that the proposal will see the light of day with regard to its implementation.