Tue | Dec 7, 2021

Withdraw bank levy, says Shaw

Published:Tuesday | April 22, 2014 | 5:30 PM

Debbie-Ann Wright, News Editor - Radio



The Opposition spokesman on finance, Audley Shaw, says Finance Minister, Dr Peter Phillips, must scrap plans to introduce a tax on withdrawals from banks before the close of the Budget Debate.




Making his contribution to the Budget Debate in the House of Representatives this afternoon, Shaw described the tax on withdrawals as cruel.



The new tax, which will be a levy on withdrawals from deposit-taking institutions, will see withdrawals of less than one million dollars being subjected to a 0.1 per cent tax.



Phillips says given the increase in the income tax threshold, PAYE earners would have to make withdrawals of $12.48 million in one year to be in a worse off position after paying the withdrawal tax.



However, According to Shaw, the levy is a disincentive to persons banking their money and comes at a time when the Government should be encouraging formal banking.



Shaw also says the tax on withdrawals from deposit taking institutions present another opportunity for banks to increase earnings from administrative fees.



He says he is not convinced that the Government has worked out with the banks how the money will be paid over and whether the banks will charge for collecting the tax on behalf of the Government.



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