Dear Editor,
The news that the Government plan to start taxing bank withdrawals effective June 1, 2014, is shocking! The announcement came on the eve of Easter, one of Christian’s holiest periods. The timing was perhaps intentional, as most persons would've either missed the news, or reacted with constrain due to the season.
I am here to say, that this new tax on bank withdrawals is one of the most evil taxes any Government has ever imposed on its people. The banking industry is already so profitable, with exorbitant bank fees on just about everything. This type of tax on withdrawals is also rarely imposed, globally. Savings in banks, should always be encouraged, as it is pivotal for the financial sector, and provide funds for loans and investment which in turn, stimulate production, employment and earnings.
Any tax on saving interest income, or the opposite (withdrawals in this case) will ultimately become a deterrent to savings which most governments would normally strive to avoid. Bank deposit is a key element of economic development.
According to media reports the new tax will be applied to electronic banking, point of sales, cheques, and withdrawals at ABM, ATM or ETM and over the counter/Internet transfers, with the exception of transfers between accounts (same person in the same financial institution).
I believe this tax will also be cumbersome to administer and pay over to Government, as tax rates will vary based on amounts withdrawn, per transaction. We understand the government budgetary situation, every year there is a shortfall, but there are many other things that could be taxed, for example luxury items.
Government could also do more to broaden the tax net forcing those not paying taxes, to pay, instead of going after regular tax payers. Bank deposits will most likely hurt tax payers more as their income is usually deposited electronically. Why tax the same persons, so many times? We don't see much effort by government to curb its own expenditure such as excessive overseas travel and lavish perks. It appears the Government must be getting desperate or running out of ideas. The Opposition must be forcefully in their response and I urge the people of this country to join forces to resist this one. It is evil, and unjust.
P Chin
The news that the Government plan to start taxing bank withdrawals effective June 1, 2014, is shocking! The announcement came on the eve of Easter, one of Christian’s holiest periods. The timing was perhaps intentional, as most persons would've either missed the news, or reacted with constrain due to the season.
I am here to say, that this new tax on bank withdrawals is one of the most evil taxes any Government has ever imposed on its people. The banking industry is already so profitable, with exorbitant bank fees on just about everything. This type of tax on withdrawals is also rarely imposed, globally. Savings in banks, should always be encouraged, as it is pivotal for the financial sector, and provide funds for loans and investment which in turn, stimulate production, employment and earnings.
Any tax on saving interest income, or the opposite (withdrawals in this case) will ultimately become a deterrent to savings which most governments would normally strive to avoid. Bank deposit is a key element of economic development.
According to media reports the new tax will be applied to electronic banking, point of sales, cheques, and withdrawals at ABM, ATM or ETM and over the counter/Internet transfers, with the exception of transfers between accounts (same person in the same financial institution).
I believe this tax will also be cumbersome to administer and pay over to Government, as tax rates will vary based on amounts withdrawn, per transaction. We understand the government budgetary situation, every year there is a shortfall, but there are many other things that could be taxed, for example luxury items.
Government could also do more to broaden the tax net forcing those not paying taxes, to pay, instead of going after regular tax payers. Bank deposits will most likely hurt tax payers more as their income is usually deposited electronically. Why tax the same persons, so many times? We don't see much effort by government to curb its own expenditure such as excessive overseas travel and lavish perks. It appears the Government must be getting desperate or running out of ideas. The Opposition must be forcefully in their response and I urge the people of this country to join forces to resist this one. It is evil, and unjust.
P Chin