Banks Educate Customers On 17.5% VAT

A teller interacts with a customer

A teller interacts with a customer
Some commercial banks in the country have begun circulating text messages to inform their customers about the new banking services policy introduced by Government.

Ecobank Ghana and Barclays Ghana are among some financial institutions that are engaging their customers on the development.

But Deputy Minister for Finance, Cassiel Ato Forson indicated that such text messages were 'premature' since no consensus had been reached regarding the exact date of implementation.

Mr Forson, who was speaking on JOY FM yesterday, also said the implementation of the 17.5 per cent VAT levy on banking services would not start in May as has been reported.

He said: 'Initially we agreed on a six-month window for the technical committee to submit a report to the Minister to be followed by public education and then we can look at the final implementation.'

Also, he stated that 'core banking services' such as the use of ATM, remittances, mobile money transfers, salaries, savings, deposits and loans would not attract the new VAT charges.

'We have never said we want to start in May by hook or crook,' he emphasized, adding that the date for implementation of the new VAT law would not take place until the public obtains knowledge about the details.

The Ministry of Finance has indicated that it is giving another grace period of one month to actualize the 17.5 percent VAT, Tax Policy Advisor, Dr Edward Larbi Siaw has said.

He further explained that the implementation of the policy would not lead to a 17.5 per cent increase in the cost of banking services.

Owing to the unpalatable nature of the announcement, some customers of banks reportedly rushed to their bankers to withdraw their savings.

By Samuel Boadi