Traders body CAIT today suggested the government to levy a nominal ATM usage tax to discourage people to withdraw cash and promote electronic payments in the country.
As a part of its Budget proposals, the Confederation of All India Traders (CAIT) has "suggested to levy a nominal ATM usage tax in order to discourage people to withdraw cash from ATMs".
If the government would impose a nominal fee of 0.5 per cent per transaction at ATMs, it will generate huge revenue which may be used for providing incentives on usage of payments through debit or credit cards, it said.
It has also suggested that transaction cost levied by banks on usage of debit or credit card and other electronic means should be withdrawn.
"Cashback to customers for electronic transactions should be encouraged to boost consumer expenditure through electronic payments," it added.
Besides, it suggested for tax rebates in case of payments made by electronic devices.
