Parliament passes Money Services Business Transfer Levy Bill, 2023.

By Aabigayle McIntosh

As of April 1, people sending monies to their loved ones abroad will be required to pay a bit more to complete those transactions.

The Lower House on Thursday approved the Money Services Business Transfer Levy Bill, 2023.

It introduces a money services business (transfer) levy which will become payable to the Commissioner of the Inland Revenue Department (IRD) within thirty days of the end of the month during which the payment was received. 

Failure to pay the outstanding amounts will result in interest and a penalty that may be imposed under the Tax Administration and Procedure Act.

Prime Minister Gaston Browne said,” This is one of the adjustments that we would have made last year to our taxes during the last budget debate to increase the yield. My understanding is that these transfers are significant and are expected this year to be in the region of 100 million dollars which is a significant amount of money leaving our shores,” Browne said.

Government MPs including Member of Parliament for St John’s Rural East the Hon Melford Nicholas supported the bill.

“This increase on an incremental basis may not result in more than a $7 or so. And you are saying that for a country that accommodates people to be able to provide them with housing, and education. To ask them to make this contribution while we do not put any restrictions on them to remit monies to their families overseas”, said Information Minister Melford Nicholas.

The opposition party is, however, not in agreement. St John’s Rural West MP Richard Lewis stated that any additional percentage is an added burden upon all the other taxes. He believes this is going to hurt the money transfer businesses and the people.