[ 2014-04-20 ]

Official: VAT On Banking Services Takes Off From Month Of May
From next month clients are likely to pay more for
any service rendered to them by a bank.

Joy Business gathers that the commercial banks
together with the Ghana Revenue Authority have now
agreed for the tax on their service to be
implemented from May instead of this month.

This could mean that the cost of some services
offered by the financial institutions could go up
by 17.5 percent unless they decide to absorb the
cost.

Already some commercial banks have sent text
messages to their customers about the tax taking
off from next month, Joy Business has learnt.
However some analysts are worried that the tax may
affect efforts to encourage more people to save
with the commercial banks.

Executive Secretary of the Bankers Association,
D.K. Mensah explained to Joy Business how the tax
would work.

“Assuming you buy an instrument from a bank, you
pay it with your cedis but for doing that for you,
I charge you a fee, let say 5 cedis on a product;
government is saying that I should take another
17.5 percent on the fees to be paid into
government chest.”

Source - MyjoyOnline

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