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 Jamaicans new tax on withdrawals form banksfive 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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Ann Marie BucknorMarjorie WedderburnMarc ByfieldDaphbop Nuhcare Nuhbehavia WaltersPeter Parchment Recent comment authors
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Marshalee Goodaz Thompson
Guest

This is a sure fire way to get people to start save money under mattress again SMDH !!!!!!

Marshalee Goodaz Thompson
Guest

This is a sure fire way to get people to start save money under mattress again SMDH !!!!!!

Carmeta Albarus
Guest

I guess the money you have in the bank is not really yours. I suppose people will now be dissuaded from putting their money in the bank. What a backward move

Orville Smith
Guest

lol….remember what wikileaks stated about this minister……tis the voice of peter…but the hand of the imf and state dept……we thoroughly deserve this and whats to come

Anne-Marie Bucknor
Guest

I will now demand my salary in cash. Union here i come.

Shaunnah McBean
Guest

Jamaica gone to the dogs str8 this is complete madness what a waste of govt

Peter Parchment
Guest

I am a civil servant. This is how I am affected: Salary = Frozen to 2016 Income tax = 25% of gross salary (net of threshold of $507,312 per year) GCT = 16.5% of purchases with a promise to increase the number of items taxable by GCT. Tax on fuel = $8.75 per litre of fuel purchased Tax on interest at the bank (Govt. Withholding tax) = 25% of interest earned (applicable once it is withdrawn within 5 years) Property tax = between 1.5% and 2.0% of the value of the unimproved value above $100,000 (paid annually) and now I… Read more »

Daphbop Nuhcare Nuhbehavia Walters
Guest

omg is this really serious? after me wuk so hard…….. sen me dam money to jamaica. bank to save …..trying to achieve something in life now am hearing this b…s..t about paying tax to withdraw my own hard labour if so be the case i have a plan for them this is totally asylum style ……#seriously

Marjorie Wedderburn
Guest

all we have to do is go the old fashion way and keep our money else where

Carmeta Albarus
Guest

I guess the money you have in the bank is not really yours. I suppose people will now be dissuaded from putting their money in the bank. What a backward move

Ann Marie Bucknor
Guest

I will now demand my salary in cash. Union here i come.

Marshalee Goodaz Thompson
Guest

This is a sure fire way to get people to start save money under mattress again SMDH !!!!!!

Marjorie Wedderburn
Guest

all we have to do is go the old fashion way and keep our money else where

Peter Parchment
Guest

I am a civil servant. This is how I am affected: Salary = Frozen to 2016 Income tax = 25% of gross salary (net of threshold of $507,312 per year) GCT = 16.5% of purchases with a promise to increase the number of items taxable by GCT. Tax on fuel = $8.75 per litre of fuel purchased Tax on interest at the bank (Govt. Withholding tax) = 25% of interest earned (applicable once it is withdrawn within 5 years) Property tax = between 1.5% and 2.0% of the value of the unimproved value above $100,000 (paid annually) and now I… Read more »

Daphbop Nuhcare Nuhbehavia Walters
Guest

omg is this really serious? after me wuk so hard…….. sen me dam money to jamaica. bank to save …..trying to achieve something in life now am hearing this b…s..t about paying tax to withdraw my own hard labour if so be the case i have a plan for them this is totally asylum style ……#seriously

Orville Smith
Guest

lol….remember what wikileaks stated about this minister……tis the voice of peter…but the hand of the imf and state dept……we thoroughly deserve this and whats to come

Shaunnah McBean
Guest

Jamaica gone to the dogs str8 this is complete madness what a waste of govt