The CDS/PP party has written to the finance minister questioning him about the potential impacts of the new commissions charge on card payments.
The party fears a resulting increase in cash payments and a ‘greater insecurity for traders and consumers who will be carrying more cash around.
The CDS/PP wants to know who should be paying the new 4% that is being levied on commissions charged by banks to those of their commercial customers who accept card payments: should it be paid by banks, the merchants, or their customers?
The party also wants to know whether this tax runs the risk of traders abandoning their electronic payment terminals, thereby increasing the informal economy and the insecurity of consumers and traders who will be carrying more cash around.
These questions were addressed to the Minister of Finance, Mário Centeno, after the distribution and restaurateur sectors publicly complained that the banks had started to charge them the new tax.
At issue is the 2016 State Budget rule which obliged banks to pay a stamp duty of 4% on the commissions it charges to merchants for each payment card transaction - the so-called "merchant service charge."
Although the tax is imposed on the bank, which is responsible for delivering the revenue to the State, there has always been the risk that the charges will simply be passed on to the merchants or the end customer. This is exactly what has happened now the tax is being applied.
A report from the beginning of January, 2017 in Público explained that the tax was being passed on to merchants as from December 1st, 2016.
On the same day, the merchants made it clear that, at the end of the day, it will be the customer who pays the tax as they will be passing on the cost.
Against this background, the CDS/PP wanted to know if the Government, when designing the measure, anticipated the possibility of the tax being passed on by the banks to the merchants, and from the merchants on to their customers. Also, if anyone had thought of the distinct possibility that merchants would abandon their electronic payment terminals and switch to cash.
This will increase the grey economy and insecurity, as traders and consumers will have to have carry more cash around.
Finally, the party asked if the government knew how much has been raised from this new transaction tax which seemed to be a tax on the consumer at a time when spending needs to be encouraged, not taxed further.
These were good questions but the liklihood of a sensible answer is close to zero as the new tax was poorly thought out, will raise little and annoy many, and is the last straw for many traders who feel they already pay enough commission when accepting payment by cards.
