Friday 29 Mar 2024
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THE Association of Banks in Malaysia (ABM) has released a document and list of frequently asked questions (FAQ) on its website to explain how the implementation of the Goods and Services Tax (GST) will affect the over 300 products and services of its member banks. 

In a March 26 press release, ABM executive director Chuah Mei Lin says all goods and services supplied in Malaysia will be taxable unless specifically exempted by the authorities.

“Given the wide array of commercial banking products and services, we are of the view that the public will be better served with as detailed a list as possible. That way, they will be aware of what types of bank products and services are subject to GST.”

The ABM points out that banks are merely acting as a collecting agent and cannot absorb the GST payable in respect of the various fees and charges as there are no legal provisions in that regard.

The ABM says the list on its website, www.abm.org.my, is non-exhaustive and covers only the identified banking products and services. It advises customers to refer to their respective banks for the revised fees payable for the relevant good or service after the implementation of GST. Such information will be available at the banks’ premises or on their websites.

The reason is that some banks may waive the fees involved in a particular product or service, or may treat the same issue differently. This may lead to situations where a product or service will attract GST at one bank, and not another. In the rare event of a discrepancy, the bank’s list will prevail.

The Association of Islamic Banking Institutions Malaysia (Aibim) has also published a list of GST treatments for Islamic banking products and services and FAQ on its website, aibim.com. In a March 30 press release, Aibim says Islamic and commercial banks “will have a similar treatment” on GST.

 

This article first appeared in Personal Wealth, a section of The Edge Malaysia, on April 6 - April 12, 2015.

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