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Senator says 1 per cent credit card charge is illegal

The chairman of the Senate Permanent Hacienda Commission, Tommy Galan, is warning the Superintendence of Banks that the 1% charge on international purchases of credit card holders as of 1 December could be in violation of the Constitution and the law.

He called for the Superintendence to revise the measure, saying that it is a tax rather than a charge. He added that it could be contested in the Constitutional Court on the grounds that the Constitution establishes that it is the Congress that sets taxes.

Galan said that the measure would provide a windfall for the banks and described it as an illegal tax that would benefit the banks and not the treasury. “I would not like to think that they have used mechanisms to compensate and shield bank profits,” said the president of the Hacienda Commission, as reported in Listin Diario.

The charge was authorized following an agreement between the Superintendence of Banks and the Association of Commercial Banks (ABA). The banks had committed to lower their lending rates.

Cards issued by La Asociacion La Vega Real de Ahorros y Prestamos (Alaver) and the Banco Providencial de Ahorro y Credito will not carry the new charge, reported the two banks.

Source: DR1,

Category: DR News |

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Last updated March 25, 2017 at 5:40 PM
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