KUALA LUMPUR, Jan 13 – The 6% Goods and Services Tax (GST) will apply on charges for replacement of an ATM card or account passbook if these are lost or damaged, said Alliance Bank Malaysia Bhd on its website. “Fees and charges related to the maintenance of the account will also be subject to GST, eg half yearly account maintenance service charges, service charge on request for statement or duplicate documents.
“If you perform an interbank withdrawal via the ATM, the RM1 MEPS interbank withdrawal fee will be subject to GST.” But deposits or withdrawals from savings, current and fixed deposit accounts – within the own bank’s ATM networks and branches – are exempted from GST. Also, interest paid to or received from the bank is exempted from GST. Further, penalty fees and fines are not subject to GST.
“The same treatment is applicable to both conventional and Islamic products,” said Alliance Bank. On insurance products, the bank said GST will be charged on general insurances like motor, personal accident, medical, house and fire policies. These include riders added onto the policies.
“Insurance products which are not subject to GST include life insurances like whole life, endowment, term life and investment linked insurance.” For unit trusts, the bank said GST applies on the sales charge, redemption fees and switching fees. And while the purchase of shares listed on Bursa is exempt from GST, brokerage fees will be subject to GST.