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Monday, September 26, 2022
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    HomeBusinessFinance Minister Felix Mlusu Cautions Banks On VAT

    Finance Minister Felix Mlusu Cautions Banks On VAT

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    Minister of Finance, Felix Mlusu has asked banks in the country to trade carefully when applying the Value Added Tax (VAT).

    The development comes when some banks have already effected the 16.5 VAT to their customers.

    The minister said this when he toured progress of the Shire Valley Transformation Programme (SVTP) canal construction site in Chikwawa district.

    “I would like to make one important statement that the recent implemented VAT does not affect clients in any way. It is the banks who should pay to government from whatever charges they make on their customers,” said Mlusu.

    The minister said there have been mixed reactions on the development with others saying VAT applies to customers of particular banks when seeking various services.

    “It’s a problem because even the Bankers Association of Malawi sent a very wrong message to the people on this matter. Let me make it clear here that no customer should be charged VAT on nonbanking services he or she seeks from the bank,” he stated

    The minister has since called on the people in the country to observe on particular services they get from various banks.

    Asked what happens now when some banks have already applied VAT on their clients, the minister said time is now to report to responsible offices.

    “Where customers of particular banks see VAT applying on the services they seek from banks, they should seek refund or immediately report to the banks regulator, the Reserve Bank of Malawi (RBM),” indicated Mlusu.

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