The introduction of 16.5 percent Value Added Tax (VAT) on banking services will not affect customers who do normal transactions such as deposits and withdrawals at the banks, Malawi Revenue Authority (MRA) clarifies.
MRA clarified the position at a press briefing held at Msonkho House in Blantyre.
Deputy Commissioner of MRA, Henry Ngutwa described as misleading a press release by the Bankers Association of Malawi (BAM) on the introduction of VAT on some banking services starting from 1 November next month.
Ngutwa said the truth of the matter is that through a clarification from Parliament on VAT Act from 1 November that all banks in the country have been tasked to be meeting their obligation of remitting 16.5 percent VAT from the non-banking related services which they charge their customers such as printing bank statements, ATM charges and fees for processing credits among others.
The Deputy Commissioner added that with this development they are not expecting banks to increase their bank charges as the VAT is supposed to be already included on the charges.-MBC