Banks have agreed not to charge VAT on salaries, savings, deposits, investments, interests or loans.
The agreement follows an emergency meeting held last Thursday April 24, 2014 between the Ministry of Finance, Ghana Revenue Authority (GRA) and the Ghana Association of Bankers on the implementation of VAT on financial services.
There have been some agitations among stakeholders in the financial sector as well as customers of banks on the application of the new VAT charge.
According to a press statement released by the finance ministry, by the provisions of the 2013 Act 870, VAT is not chargeable on salaries, savings, deposits, investments, interests or loans and only affects fees or commissions that are charged on some financial services.
It further states that implementation of the VAT charge for financial services will take off on June 1, 2014 and in the interim all stakeholders in the sector are to dedicate the month of May for intensive public education campaign on implementation of the tax.