Banks to collect GST for transactions, bill
payments
PETALING JAYA, March 19 — The Goods and Services Tax
(GST) will be imposed not only for MEPS transactions but
also for online banking and over-the-counter
transactions.
Association of Banks Malaysia
(ABM) executive director Chua Mei Lin said GST would be
payable in respect of a basic charge or fixed fee in
connection with commercial banking products and
services.
“Commercial banks will collect the GST for and on behalf
of the Royal Malaysian Customs. More importantly,
interest or spreads charged by commercial banks are not
subjected to GST,” she said.
Chua said the fee
charged by banks for online interbank Giro fund
transfers, including bill payment, would be subjected to
GST.
“ABM member banks will publish their list of fees and
charges and GST details, including whether GST is
payable or not for those charges,” she said. |
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Customs director-general Datuk Seri Khazali Ahmad
confirmed that online banking would also be subjected to
GST.
“If there is a bank charge or fee, then GST will be
imposed on those charges. The six per cent GST charge
will not be for the transaction amount but for the bank
charges,” he said.
Many will feel the pinch as the GST charges will affect
at least 17.6 million online banking users, both
corporate and individual users.
According to Bank Negara, most online banking
subscribers undertake funds transfers, bill payments and
salary payments.
Some over-the-counter transactions, including bill
payments at Pos Malaysia counters, will also be
subjected to GST.
Pos Malaysia said service fees collected on behalf of
billing agencies would incur GST.
“The GST is only the service fee and not the bill
amount. “For example, if the bill is RM100 and the
service fee is RM1, the customer has to pay RM101.06
after GST,” it said.
However, in most cases, the service fee is absorbed by
the billing agencies.
“Hence, the billing
agencies will also absorb the GST payment and the
customer need not pay anything beyond the bill amount.”
The uncertainty over banking and post office charges
arose after a picture of an ATM receipt from a
commercial bank went viral on social media. It was
claimed that GST charges would be imposed automatically
on the amount withdrawn from ATMs.
Source:
The Malay mail Online
, dated
19/03/2015 |