GST Applies for ATM Cash Withdrawals

gst-atm-withdrawal

Interbank ATM withdrawals will be subjected to the Goods and Services Tax (GST) starting from April next year.

GST Implementation Date:

1st April 2015

 

GST Implementation for Banking Services:

gst-interbank-atm-withdrawal

  • 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. Total charges for Interbank withdrawal: RM1.06
  • GST will only apply to the RM1 MEPS fee every time you withdraw money from an ATM not belonging to your own bank. Withdrawals from your own bank’s ATMs will not be charged with the GST.
  • GST will only be imposed to MEPS fee, but not the amount of withdrawal. RM1.06 will be imposed per MEPS withdrawal, be it RM100 or RM1000.
  • GST is also to be imposed on other banking services such as the issuance of cheque books, bank statements, loan processing, and services related to shares trading.

 

Conclusion:

Be a smart consumer. Try to withdraw cash ONLY at your own bank’s ATM.

Withdrawal of 4 times per month from Interbank ATM machine will cost you RM4.24 a month.

By using your own bank’s ATM you can save RM4.24 X 12 months = RM50.88 a year!

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