Tancoo: Take back your power – Public can stand up against bank fee increases

Finance Minister Davendranath Tancoo delivers the budget in Parliament at the Red House, Abercomby Street, Port of Spain, on October 13. FILE PHOTO/FAITH AYOUNG -

ACKNOWLEDGING the potential for decreased business credit and insurance affordability after a 0.25 per cent asset tax was imposed on banks and insurance companies during the budget, Finance Minister Davendranath Tancoo has urged citizens to "take back their power" when choosing their banks.

Speaking at the TT Manufacturers’ Association post-budget discussion at Hyatt Regency on October 14, Tancoo said increased bank fees were not unusual or unexpected.

“Banks have been charging fees of all sorts for every single transaction and declare substantial profits. That is a private-sector initiative, they are making money and I am very glad that they are making money.

“What the government is asking is they put some of that towards national development.”

“And they may pass it on,” he said “But the thing is: TT is more digitally aware, and I look forward to the point in time when our citizens start to take their power significantly back.”

“And if you find that an institution is not treating you the way that you should be, if you find an institution is overcharging or passing on a quarter per cent of a charge on you, then use your digital tools and find better options.”

Tancoo spoke about his own experience saying he once withdrew $20 from his own bank account just to see the transaction fee and was surprised at the amount.

“That’s what businesses will do. But I depend on citizens to take back the power that they have, to be a little bit more discerning.

He said, “If the citizens push back against these kind of actions…we may end up with toilets in banks so that members of the community who go there will have access to a toilet.”

He also emphasised the size of the tax.

“This is a quarter per cent asset tax, it’s a quarter percent asset levy, a quarter per cent.

“We have asked everyone to pay their fair share in helping build this country moving forward. What we are asking is for banks and insurance to pay their fair share.

“And we’re not going at one per cent, or two per cent or three percent, we are going at a quarter percent. A quarter per cent of an industry thrives and is also challenged.”

“Citizens, all, here and outside, let us take back our rights, let us please get together and establish that we have power…your money is being used to generate profits.”

Giving the example of negotiations between banks and the Jamaican government regarding similar taxes, EY Caribbean executive chairman Wade George said, “Once we are transparent about what this is about, then it’s much easier to have a dialogue (with banks). In terms of passing on costs, it comes down to competition to consumers.

“I think the banks will do their very best to absorb some of it and maybe pass on some of it, but that is the reality of the business.”