No VAT on bank deposits, loans and withdrawals

ST. KITTS, NOVEMBER 3, 2010 (CUOPM) – There is no Value Added Tax (VAT) on bank loans, withdrawals or deposits only on fees. That’s the word from Prime Minister and Minister of Finance, Hon. Dr. Denzil L. Douglas.

“When you go to the bank to withdraw your money, to the ATM machine or you go to deposit, there is no 17 percent extra or less that you are going to get in the money that you are depositing or the money that you are withdrawing. That is not how it works,” said Dr Douglas during his weekly call in radio programme “Ask the Prime Minister.”

“It does not work like that,” said Dr. Douglas, who explained: “There is no VAT. There is no VAT on bank withdrawals. There is no VAT on bank deposits, on loans or credit card payments. The VAT is collected fees charged by banks,” said Dr. Douglas, who re-iterating that “VAT has been exempted from bank fees related to the issue and processing of loans as well.”