As we se capital gains migrate incrementally toward full recognition and given that STC ultimately exists in a 12% cheaper environment than dividend tax, it is clearly advantageous for government to move the liability into to the private sector. The leniency granted certain funds is designed to encourage investment flows into that sector. Since the bank taxes the trading and management fees on those accounts at the full tax rate, you can rest assured that the government is not losing on that deal. I fear that in the long run all of these funds will also be revised for recognition of capital gains anyway. This government needs money! It has no plan as far as growth etc. are concerned. In my opinion our tax system is tantamount to theft and/or fraud.