News

ATM transaction tax 'highway robbery,' Jamaicans say

April 21, 2014

"Very, very upset" is the general feeling among Jamaicans about a new ATM transaction tax announced last Thursday. The levy will go into effect June 1.

The new tax is expected to raise $2.5 billion, according to the Jamaica Observer. The tax will apply to withdrawals through electronic banking, POS transactions using debit cards, checks, branch transactions, ATMs and Internet transfers. Virtually the only tax-free transactions will be account-to-account transfers within the same financial institution.

"[T]hey expect me to pay to take out my own money," street vendor Paul White told the Observer. "That's highway robbery. I'm very, very upset, very, very upset."

Private Sector Organization of Jamaica president Christopher Zacca said he thought the tax would hinder economic growth. "[T]o me it is really a disincentive to be a part of the formal banking system," he told the Observer.

Or as another very upset Jamaican said, "So now we are just being driven to resort to mattress lifestyle."