Andrew Lo
KUCHING (Jan 25): It will be very discriminatory if only government servants’ bonuses are tax-free and not across the board, says Sarawak Bank Employees’ Union (SBEU) chief executive officer Andrew Lo.
He said it will only be fair if bonuses paid to employees in the private sector are also tax-free.
“It will be very discriminatory unless bonus paid to employees in the private sector is also tax-free,” he said when contacted by The Borneo Post today.
Nevertheless, he said in view that the government servants’ bonuses are to be tax-free, it is time for the civil service to be more productive and efficient.
“Even senior civil servants in the professional and managerial group got this handout and tax break,” he said.
Recently, Prime Minister Datuk Seri Anwar Ibrahim during his official visit to Sarawak had announced that bonuses for all civil servants will be tax-free.
Prior to that, Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg brought the matter up in a discussion with Anwar for bonuses of civil servants in the state to be tax-free.
However, Anwar had announced that he decided to implement it nationwide.
In December last year, during the State Legislative Assembly sitting, Abang Johari had announced that all Sarawak civil servants will receive one-and-half month’s salary or at least RM2,000 each by end of December 2022, to recognize their contribution and commitment in carrying out their duties and responsibilities professionally throughout the year.
In announcing this, the Sarawak Premier said the state government would also give a one-off RM500 bonus to some 137,000 federal civil servants based in the state.