BLANTYRE-(MaraviPost)-Malawi Revenue Authority (MRA) has snubbed Bankers Association of Malawi (BAM)’s 16.5% Value Added Tax (VAT) on customers.
MRA says there is no banking service in the country that attracts VAT by law.
MRA Deputy Commissioner General, Henry Ngutwa told the news conference in Blantyre on Thursday, October 28, 2021 that BAM statement is misleading and misinformation “that needs to be corrected” as only non-banking services are subject to VAT.
The authority intervention over the matter after general public sounded alarm on VAT imposition.
BAM has issued a statement indicating that effective November 1,2021, banks will impose a 16.5% VAT on some banking services.
Some of the non-banking services that attract VAT, according to the Amended VAT Act of 2021, are credit card late payment fee, interchange fees between a bank and other financial institutions, charges for cash handling such as counting and fees for processing credit or debit card payment transactions, including gateway fees.