- All banks have been ordered to stop charging VAT on financial services
- The GRA insists the order follow the amendment of the tax law which was triggered by the finance minister
- This order follows complaints that some banks are charging the 17.5% VAT
The Ghana revenue authority is charging all financial institutions, banks included, to as a matter of urgency stop charging VAT on all financial services.
This good news which comes as a relief to Ghanaians across the country, follows government's resolve to take off the 17.5% VAT on financial services which has been described as "nuisance tax".
In a letter forwarded all banks in the country, the acting registrar general, Emmanuel Kofi Nti revealed that the tax cancellation started when Parliament passed the Value Added Tax (VAT) (Amendment) Act 2017 (Act 948) that included the "supply of financial services as exempt supply."
"In line with the above, we hereby inform all financial institutions to discontinue charging VAT on financial services," the statement insisted.
Read full statement below: