The Government is coming under increasing fire over the announced new tax to be imposed on withdrawals from deposit-taking institutions, starting June 1. Finance Minister Dr Peter Phillips announced the new tax as he opened the Budget Debate last Thursday, and said the measure was expected to gain $2.25 billion this fiscal year, which would provide the bulk of the $6.7 billion in new taxes which the Government is budgeting to collect. The tax will be calculated on a graduated rate system, with withdrawals less than $1 million being subject to a 0.1 per cent tax. This means that Jamaicans will pay $1 for every $1,000 they withdraw from deposit-taking institutions through electronic banking, point of sale transactions (debit cards), cheques, banking hall transactions, ABMs, ATMs, and Internet transfers. The only exception is Internet transfers made by a person between his accounts in the same financial institution. Persons withdrawing more than $20 million will have to pay a 0.05 per cent tax, while those withdrawing more than $5 million, but less than $20 million, will pay 0.075 per cent tax; and those taking $1 million to $5 million will pay 0.09 per cent tax.
Posted on: Sun, 20 Apr 2014 21:14:10 +0000