Credit Card Levy Confusion

The Consumer Council of Fiji seeks clarification from relevant authorities on the new
credit card levy introduced by the Government.

As part of the 2012 Budget, a 2% levy is effective on the usage of all credit cards
issued by local banks from January 1, 2012. Under this policy, banks will be charging
consumers a 2% levy on any monthly credit card.

The confusion arises with contradicting statements issued by Fiji Revenue and
Customs Authority and ANZ.

FRCA in its notification to all banks in Fiji is saying that all banks are to charge its
customers a credit card levy at the rate of 2% on any monthly credit card outstanding
balance exclusive of interest and other bank charges while ANZ in a public notice in
Fiji Times 21/01/12 is saying inclusive of interest and back charges.

Hence consumers will end up paying more as per ANZ’s public notice and this is
opposite to what the Tax regulator is saying.

The Council therefore on behalf of consumers calls on the two organisations to clear
the air immediately and avoid consumers being overcharged if the levy is to be paid
exclusive of interest and bank charges.