The Ghana Revenue Authority (GRA) has directed all financial institutions to discontinue charging VAT on financial services after Finance Minister, Ken Ofori-Atta announced its abolishment in the 2017 Budget statement presented to parliament.
Government in the 2017 Budget Statement announced some tax reliefs, including abolishing of VAT on Financial services.
A statement from the GRA signed by the Commissioner General, Mr. Emmanuel Kofi Nti and copied to Citi Business News directed all financial institution to stop charging the fee since the law has been repealed.
The statement recounted that “To give legal effect to the policy on VAT on Financial services, Parliament passed the Value Added Tax (Amendment), Act 2017, Act 948 to include the supply of the financial services as exempt supply”.
“In line with the above, we hereby inform all financial institutions to discontinue charging VAT on financial services,” it warned.
Banking sector observers happy
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.
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By: Lawrence Segbefia/citibusinessnews.com/Ghana