question

Personal pension contributions are made net of basic rate tax, so there will be a saving of 4000 (20000 at 20%) compared to making a gross contribution to a company pension scheme. This is because Kioni will only need to make a net contribution of 16000 to a personal pension scheme. The saving will cancel out the increased income tax liability of 4000 (34982 – 30982)

What does the above statement mean

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