Jamaicans will soon have to pay tax on bank withdrawals!

Jamaicans will soon have to ‘fork’ out a little extra money every time they make a withdrawal at a bank.

This was announced during  a presentation by Minister of Finance and Planning Peter Phillips in Parliament on April 17.

According to a report from the Gleaner, in ADDITION to fees which some legislators have deemed exorbitant, persons withdrawing monies from deposit-taking institutions will be hit with taxes as of June 1,2014 as the Government hunts revenue to help it meet its 7.5 per cent of GDP primary-surplus target this fiscal year.

The new tax, which will be a levy on withdrawals from deposit-taking institutions and security dealers, will be calculated on a graduated rate system, with withdrawals less than one million being subjected to a 0.1 per cent tax.

This measure will mean that persons withdrawing $1,000 will have to pay $1 in taxes. Conversely, persons withdrawing a sum greater that $20 million will have to pay a 0.05 per cent tax; those withdrawing more than five million, but less than $20 million will pay 0.075 per cent tax; and those taking one million to five million will pay 0.09 per cent tax.

Finance Minister Dr Peter Phillips said the measure was expected to gain $2.25 billion this fiscal year, and would provide the bulk of the $6.7 billion in new taxes which the Government was budgeting to collect this fiscal year.

North East St Andrew Member of Parliament, the Opposition’s Delroy Chuck, commented that the measure represents a “stupid tax” and urged Phillips to reconsider its application.

The new withdrawal tax will apply to electronic banking, point of sales, cheques, and withdrawals at ABM, ATM or ETM as well as over the counter and internet transfers, with the exception of transfers between accounts of the same person in the same financial institution.

How do you feel about this latest tax to be implemented?

Source: http://jamaica-gleaner.com/

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