Debit tax was introduced with the enactment of Debit Tax Act No. 16 of 2002 effective on 1 st of June, 2002. This was amended in 2003 and in 2007. The debit tax shall be levied at the rate of 0.1% on the total liable debits made during each calendar month from any current account maintained at a Commercial Bank or a Specialized Bank or from each savings account maintained at a Commercial Bank, a Specialized Bank or a Finance Companies. This is applicable on debits which exceeds Rs. 20,000/- per month.   Repeal of Debits Tax Act With effect from 01.04.2011, Debits Tax Act has been repealed by Amendment Act. No.14 of 2011, and therefore, debits tax will not be collected by commercial banks, specialized banks or any financial institution.   However, the provisions of the Act will be applicable for three years in respect of outstanding matters to be dealt with under the Act irrespective of the fact that Act has been repealed. Accordingly, any commercial bank, specialized bank or any financial institution is required to collect such tax and remit the tax so collected.   Further, any action which is still proceeding or matter filed under the provision of the Act is to be continued until they are concluded. If such action cannot be concluded before the given three year period, then period may be extended.