PNG DEBIT TAX CLIPS BANK WITHDRAWALS

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PORT MORESBY, Papua New Guinea (The National, Jan. 9) - Every withdrawal made at commercial banks is now being taxed.

The new debit tax is included in the 2004 budget.

Commercial Banks began charging customers with a debits tax effective Jan 1. The tax is on withdrawals from savings accounts, standing orders or periodical orders, loan drawdowns, transfers and electronic transactions and bank fees and charges.

Banks say the debit tax is imposed by the Papua New Guinea government and is not a bank charge or fee.

The tax applies as follows on bank accounts:

The Government has exempted accounts held by the government of a country other than Papua New Guinea and charities and non-profit organizations subject to the bank holding an exemption certificate issued by IRC.

The exemption is available from branches of ANZ, Westpac and Bank South Pacific.

Those automatically exempted are foreign currency accounts and term deposits rollovers.

January 9, 2004

The National: www.thenational.com.pg/

 

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