KINIBIZ The upcoming goods and services tax (or GST) has Tiger’s tail tangled in knots. First, she was informed that GST would be charged on her credit card annual fee. Now it is set in stone that banks will also charge GST. Is this the end, she wonders?

Tigers are frugal members of the animal kingdom. They waste no food; after a meal, all kills are stashed away carefully for a later meal and water is used sparingly. Except when it comes to naps, the longer the snooze time, the better!

Sadly, Tiger foresees fewer naps and more work in the near future thanks to the implementation of the goods and services tax (GST). With the cost of living expected to go up for Tigers and humans alike, Tiger predicts she’ll have to work twice as hard so she can catch the occasional nap.

What’s for sure is that us Tigers and the two-legged homo-sapiens will be spending less after April 1, at least until we get used to the idea of having GST around. Tiger is even mulling getting rid of her credit card since GST will be charged on the annual fee. But this will be tough to do seeing that Tiger does a lot of travelling and online shopping.

To the uninitiated, financial services are generally classified as exempt supplies where no GST will be imposed on interest charged by banks. However, fees, service charges, commissions, or other similar charges imposed by banks will be subject to 6 percent GST.  Fees and charges for Islamic products are also subject to GST, though not the profits incurred.

Paying more for her credit card usage does not pinch as much as the fact that 6 percent GST will be charged by banks for all MEPS transactions and online banking transactions. These include online interbank Giro transfers, such as bill payments.

For the full story go to KiniBiz .

This article was written by G Sharmila.