Premier Announces Review Of Bank’s Levy Decision

The decision by the Bank of Montserrat to pass on the bank interest levy to its customers will be revisited. That undertaking was made by the honourable Premier and minister of Finance Donaldson Romeo.

In response to a question by the Leader of the Opposition, Mr. Romeo indicated that the government is not in agreement with the bank's board of directors on the matter.

In 2015 the Government amended the Bank Interest Levy Act that provides for the imposition of a levy 0.5 per cent on bank deposit balances. 

The Bank of Montserrat announced in March, that having absorbed the tax, at a cost of approximately  2 million dollars for the past three years, the 0.5 per cent will be deducted from customers accounts.

Speaking in the Legislative Assembly on Wednesday Premier Romeo said more discussions on the levy were never finalized.

Mr. Romeo expressed concern about the impact of the levy on the depositors.

Meanwhile the honourable minister of Communications Works, Labour and Energy Paul Lewis also called for more discussion on the Bank Interest Levy.

He described the Bank's actions as disrespectful and premature.

The Honourable minister of Communications and Works Paul Lewis.

The honourable Parliamentary Secretary Gregory Willock suggested that the Bank of Montserrat is in a position to absorb the cost of the Bank Interest Levy.

He also believes the decision should be rescinded.

The Honourable Parliamentary Secretary Gregory Willock.