Finance Ministry: GST for certain banking services

PETALING JAYA: Bank customers will have to pay extra for certain banking services once the Goods and Service Tax (GST) is implemented on April 1.

The Finance Ministry, on its Facebook page Friday, said service charges by banks will be subjected to GST, and as such customers will have to pay the extra 6%.

“Any fees imposed by banks, such as MEPS charges, will be subjected to GST.

“For example, if a Maybank card holder withdraws from a CIMB ATM, and the MEPS charge is RM1, the GST rate will be RM0.06,” the ministry said, adding that the actual amount withdrawn would not be subjected to the new tax.

According to GST official website, customers would also be charged GST on fees charged for insurance or cheque books, on provision of bank statements, loan processing, standing instruction services and maintenance services in relation to buying and selling of shares.

While GST applies to the fees imposed, the actual amount involved in the transaction such as the amount withdrawn and the interest paid for loans will not be affected by the tax.