Banks begin to abide by GRA directive on VAT

Some banks in the country have begun complying with the directive from the Ghana Revenue Authority (GRA), ordering them to stop charging VAT on financial services.

The banks have started sending messages to their customers,  notifying them of removing the 17.5 percent VAT charges on financial services.

This follows an order from the GRA, directing all financial institutions to discontinue charging VAT on financial services after it was abolished in the 2017 Budget.

Citi Businesss News can confirm that Ecobank, CAL, UMB bank, Unibank, and Zenith Bank, among others have sent text messages to their customers announcing the ceasure of the charges.

The message from UMB for example read “Dear Valued Customer, as directed by the government, UMB will no longer charge VAT on financial services. Please call 0302633988 for more info”, while that of Ecobank said “Dear client, the VAT ACT as amended (Act,948, 2017) abolishes the 17.5% VAT on financial services. Accordingly, Ecobank has stopped charging VAT on transaction”.

It is expected that all banks will send messages to their clients to notify them as part of creating awareness.

Emmanuel Kofi Nti - Commissioner General, GRA

Emmanuel Kofi Nti – Commissioner General, GRA

Banking sector observers happy

Already, some stakeholders in the banking sector  have expressed excitement at the move asking banks in the country to quickly abide by the directive.  

One of the major advocates for the scrapping of the VAT on financial services is Banking Consultant, Nana Otuo-Acheampong.

Nana Otuo-Acheampong had described the charge as a disincentive to the growth of the banking industry.

After Finance Minister, Mr. Ofori-Atta announced the abolishment of the charge, Nana Otuo-Acheampong was optimistic the move will inure to the benefit of Ghanaians.

By: Lawrence Segbefia/citibusinessnews.com/Ghana