Joint Press Conference on yousave LOMOBILE 10% TAX Refund
The youSave loMObile Service was launched in November 2019 with partnership of our two national mobile network operators (MNO’s), Solomon Telekom Company Limited and BeMobile. Where the informal sector can now register and save under the SINPF youSave Retirement Scheme from the comforts of their home.
Under the new service from 12 November 2019 to 8 September 2020, a total of 5,414 members were registered and on boarded reflecting an average daily registration of 23 new youSave members registered per day.
Since the launch of youSave loMobile in November 2019 to 8th September 2020, a total of 40,126 deposits (including new member deposits for registration) were made totalling $1.542 million. The average daily deposit for the period was 125 deposits per day with an average deposit amount of $38.43.
On 24th August 2020, the Minister of Finance approved and announced the 10% tax refund to youSave members who used part of their taxed airtime credits for their savings under youSave. Also at the same time the SINPF with the support of the 2 MNO’s reduced the minimum deposit from $10 to $5.
With the removal of the previous 10% tax and the reduction to the minimum $5 deposit, there was a significant increase in the number of daily deposits. The number of average daily deposits increased to 239 per day, an increase of more than 90% for the period 24th August 2020 to 8th September 2020.
The average deposit amount has also slightly increased even though the minimum deposit was reduced to $38.71 per deposit from $38.43.
This has proven that the previous 10% tax on airtime credit has been a strong disincentive to youSave members in using airtime credit as a currency for their youSave savings.
For the period 24 August 2020 to 8 September a total of 316 new members had registered as youSave new members under youSave loMobile service (excluding physical registrations).
The current youSave membership has reached 18,858 savers with a net contribution balance of $14.5M.
As indicated above 29% or 5,414 of this total were on boarded under the youSave loMobile by our ambassadors.
With the strong feedback from new and existing members to use the youSave loMobile after the 10% tax refund to save for their future, the SINPF youSave team will be working closely with the 2 MNOs to reach out throughout our communities to secure more members.
The SINPF and its 2 partners are now working on a concept to consider how youSave members can digitally draw their savings.
SINPF BOARDROOM 9TH SEPTEMBER 2020