Govt reaches agreement with banks over VAT on financial services

banksGovernment has reached an agreement with commercial banks for the VAT on financial services not to be charged on salaries, savings, deposits, investments, interests or loans.

The tax is to affect only fees or commissions that are charged on some financial services as in the provisions of the 2013 Act 870.

It was also reiterated that June 1, 2014 will be the commencement date for the implementation of Act 870 on financial services whilst all stakeholders dedicate next month to intensive public education campaign on implementation of the tax.

These were contained in a statement from the Finance Ministry following an emergency meeting held on Thursday April 24, 2014 on the implementation of VAT on financial services.

The Finance Ministry, Ghana Revenue Authority and the Ghana Association of Bankers participated in the meeting.

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