As of 1 December banks will collect an additional 15 cents as a fee in respect of debit transactions undertaken by their customers.
This increases the fee to 25 cents per debit transaction. The debit transaction fee is charged on withdrawals from bank accounts, states a press release.
When Financial Secretary Kenneth Jefferson presented the 2006-07 Budget on 28 April, he outlined revenue measures which included the debit transaction fee. The purpose of the revenue measures is to help finance a number of capital projects. Among the projects are construction of high schools and roads.
The debit transaction fee is linked to the local postage stamp rate and, when that rate was increased to 25 cents, effective 1 July, the debit transaction fee should have been increased at the same time but, this did not occur owing to an administrative oversight.
‘The debit transaction fee has not been increased since 2001.’ Mr. Jefferson said.