Short Change

Treasury officials say that given the exemptions in the revised bill, initial estimates for the first year will have to be marked down.

rnrnA slight drop to Rs. 2 bn is expected, Inland Revenue officials said, but any significant effect of the exemptions is likely to be seen once payment flows start at the end of July and following the initial transitional period.

rnrnThe bill allowing a 0.1 percent debit tax on all current account transactions was passed this month with retrospective effect from June 1.

rnrnBroadly, the Act recognises exemptions for debits made from current accounts maintained by identified groups such as the government, diplomatic missions, local authorities etc as well as on all financial intermediaries.

rnrnExemptions have also been allowed for debits made to any lquote special accounts
quote that have been set up for specific transactions (laid out in the act), on a declaration given by the account holder.

rnrnThese special accounts also includes for payment of benefits to