To address these issues, the Barbados Public Workers' Co-operative Credit Union Ltd, held an information session at its Belmont Road headquarters.

Concerns

President of the Public Workers Credit Union, Paul Maxwell, spoke to the DAILY NATION about the matter, and indicated "there has been a lot of misinformation and misunderstanding. People are not vex, they just want to understand".

Under the amended Income Tax Act, money invested in a credit union which is claimed for income tax deductions (up to $10 000 from $3 000), will be "held" for five years instead of two, a move Maxwell said was made to level the playing field in terms of mutual funds.

However, he added that money could actually still be used, but a 20 per cent withholding tax would be applied, which would now be paid to Inland Revenue by the credit union.

Maxwell said this withholding tax was nothing new, but he believed it was "too much of an administrative headache" for Inland Revenue to collect, as is would not know the exact number of times an individual would have withdrawn money.

Limits and deductions

In addition, he advised the public the limit was $10 000, which meant a credit unionist could claim for any amount less than that.

Maxwell also indicated that the deduction was determined by your tax bracket percentage, not the actual amount being claimed.

"In any case, people who earn less than $25 000 a year do not pay income tax and this amendment only applies to those who do," he said.

At the City of Bridgetown Co-operative Credit Union Ltd, marketing manager Maria Boyce-Taylor, said people were concerned but were co-operating.

"With change comes concerns, especially since it is happening at the end of the fiscal year. But people are not saying it is awful and they are still filing," she said.

As for the Public Workers Credit Union, Maxwell said it would continue to hold weekly information sessions, the next one on March 12 at 3 p.m with others scheduled for March 16 at 5:30 p.m and March 26 at 3 p.m. (CA)