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GST only imposed on cash withdrawals made using MEPS

GST only imposed on cash withdrawals made using MEPS
KHAZALI: Whatever service charge imposed by a bank is subjected to GST
KUALA LUMPUR: Only cash withdrawals using the Malaysian Electronic Payment System (MEPS) service at ATM (automatic teller machines) will be imposed with the Goods and Services Tax (GST).

Royal Malaysian Customs (Customs) director-general, Datuk Seri Khazali Ahmad said the six percent charge will only be imposed on transactions utilising the MEPS service, and not based on the amount withdrawn.

This means, only the RM1 MEPS charge for each transaction will be taxed when GST comes into play on April 1.

The GST will not affect a consumer who withdraws money via his or her own bank's ATMs.
"For example, if I use my CIMB Bank card and withdraw cash from a CIMB Bank ATM machine, no charge will be imposed. GST will only be imposed when I use the MEPS service.

"If I withdraw money using the same CIMB Bank card at a Maybank ATM, then the RM1 MEPS service charge will be subjected to GST," Khalid told reporters after attending the signing ceremony between Customs and GST-collection banks in Putrajaya today.

When asked what were the other bank service charge subjected to GST, he said whatever service charge imposed by a bank, is subjected to GST.

Earlier at the event, seven government-appointed banks signed agreements with Customs to become its GST-collection agents.

The seven are RHB Islamic Bank Bhd, Malayan Banking Bhd, CIMB Bank Bhd, Public Bank Bhd, Bank Islam Malaysia Bhd, Alliance Islamic Bank Bhd and Hong Leong Islamic Banking Bhd.

Meanwhile, commenting on the recent anti-GST protest, Khazali said Customs will answer all questions brought up by the protesters on the official GST website soon.

On Monday, some 100 activists held a sit-in protest in front of the Kelana Jaya Customs Complex, demanding the government agency to answer the 106 questions they had on GST.