No Result
View All Result
Monday, August 8, 2022
Citi Business News
  • Home
  • News
    • All
    • Agriculture
    • Economy
    • General
    • Government
    • Local Economy
    • Top Stories

    Yara’s Grow Ghana initiative to help empower farmers and boost yields

    Invest for Jobs and partners of N4G Project graduates 654 girls trained in fashion skills

    S&P downgrade: Gov’t urged to quicken pace of fiscal consolidation

    Ghana EXIM bank CEO hosts national AfCFTA coordinator

    S&P revises Ghana’s rating to ‘CCC+/C’, outlook negative

    LPG Marketers Association promise availability of product after strike

    GIPC and GSE sign MoU to attract more investment into Ghana

    Dr. Ampabeng advocates consolidation of road taxes into fiscal policy

    We’re ready to re-engage gov’t on acquisition of Vodafone shares – Telecel

  • Business
    • All
    • Agribusiness
    • Banking And Finance
    • Manufacturing
    • Markets
    • Mining
    • Oil And Gas
    • Real Estate
    • Tourism
    • Transport

    Zenith Bank Ghana wins premium quality West African banking brand of the year 2021

    GIPC and GSE sign MoU to attract more investment into Ghana

    Appolonia City unveils its first commercial building; Adumuah Place

    Dr. Ampabeng advocates consolidation of road taxes into fiscal policy

    WAPCo commits to cleaner and reliable energy

    Government eyeing GH¢750m with new E-VAT policy

    Agribusiness entrepreneurs must take advantage of AfCFTA – ADB MD.

    National AfCFTA Policy Framework and Action Plan launched to boost trade

    We remain committed to getting LPG retailers to resume operations – NPA

  • TECHNOLOGY

    We’re ready to re-engage gov’t on acquisition of Vodafone shares – Telecel

    New deadline for SIM re-registration too short – MoMo agents association

    Extend SIM card re-registration exercise to January 2023 – MoMo agents

    Vodafone agrees sell stake in Ghana’s business to Telecel

    Telecoms Chamber and IIPGH advocate sustained coding education

    IIPGH to enter coding education partnership with Telecoms Chamber

    PayAngel joins Microsoft for Startups Founders Hub

    Node 8, HTU hold first edition of Node X in Ho

    Financial transactions will be allowed even without Ghana card from 1st July – GAB assures

  • INTERNATIONAL
    • All
    • Africa
    • Asia
    • Europe
    • Middle East
    • US

    Agribusiness entrepreneurs must take advantage of AfCFTA – ADB MD.

    Inflation, debt, and forex crisis is pushing many African economies to the brink – IMF warns

    African countries that could follow Sri Lanka into economic chaos

    Africa’s internet economy to cross $180 billion by 2025: Report

    Regional economic cooperation needed to enhance Africa’s competitiveness – Bawumia

    Ivory Coast is set to receive $26.1 billion worth of development finance from 4 lenders, the EU and France

    Gulf central banks, Bank of England raise policy rates after Fed hike

    US Fed meets inflation surge with 75bp hike

    As Nigeria’s inflation rate accelerates to 17.71%, the World Bank warns millions could face extreme poverty

  • FEATURES
  • Videos
Citi Business News
  • Home
  • News
    • All
    • Agriculture
    • Economy
    • General
    • Government
    • Local Economy
    • Top Stories

    Yara’s Grow Ghana initiative to help empower farmers and boost yields

    Invest for Jobs and partners of N4G Project graduates 654 girls trained in fashion skills

    S&P downgrade: Gov’t urged to quicken pace of fiscal consolidation

    Ghana EXIM bank CEO hosts national AfCFTA coordinator

    S&P revises Ghana’s rating to ‘CCC+/C’, outlook negative

    LPG Marketers Association promise availability of product after strike

    GIPC and GSE sign MoU to attract more investment into Ghana

    Dr. Ampabeng advocates consolidation of road taxes into fiscal policy

    We’re ready to re-engage gov’t on acquisition of Vodafone shares – Telecel

  • Business
    • All
    • Agribusiness
    • Banking And Finance
    • Manufacturing
    • Markets
    • Mining
    • Oil And Gas
    • Real Estate
    • Tourism
    • Transport

    Zenith Bank Ghana wins premium quality West African banking brand of the year 2021

    GIPC and GSE sign MoU to attract more investment into Ghana

    Appolonia City unveils its first commercial building; Adumuah Place

    Dr. Ampabeng advocates consolidation of road taxes into fiscal policy

    WAPCo commits to cleaner and reliable energy

    Government eyeing GH¢750m with new E-VAT policy

    Agribusiness entrepreneurs must take advantage of AfCFTA – ADB MD.

    National AfCFTA Policy Framework and Action Plan launched to boost trade

    We remain committed to getting LPG retailers to resume operations – NPA

  • TECHNOLOGY

    We’re ready to re-engage gov’t on acquisition of Vodafone shares – Telecel

    New deadline for SIM re-registration too short – MoMo agents association

    Extend SIM card re-registration exercise to January 2023 – MoMo agents

    Vodafone agrees sell stake in Ghana’s business to Telecel

    Telecoms Chamber and IIPGH advocate sustained coding education

    IIPGH to enter coding education partnership with Telecoms Chamber

    PayAngel joins Microsoft for Startups Founders Hub

    Node 8, HTU hold first edition of Node X in Ho

    Financial transactions will be allowed even without Ghana card from 1st July – GAB assures

  • INTERNATIONAL
    • All
    • Africa
    • Asia
    • Europe
    • Middle East
    • US

    Agribusiness entrepreneurs must take advantage of AfCFTA – ADB MD.

    Inflation, debt, and forex crisis is pushing many African economies to the brink – IMF warns

    African countries that could follow Sri Lanka into economic chaos

    Africa’s internet economy to cross $180 billion by 2025: Report

    Regional economic cooperation needed to enhance Africa’s competitiveness – Bawumia

    Ivory Coast is set to receive $26.1 billion worth of development finance from 4 lenders, the EU and France

    Gulf central banks, Bank of England raise policy rates after Fed hike

    US Fed meets inflation surge with 75bp hike

    As Nigeria’s inflation rate accelerates to 17.71%, the World Bank warns millions could face extreme poverty

  • FEATURES
  • Videos
No Result
View All Result
Citi Business News
No Result
View All Result

Tanzania: TRA Clears Air on Vat Extent

bycitibusinessnews
July 5, 2016
in Africa, East Africa
Share on FacebookShare on TwitterShare on Whatsapp

The 18 per cent Value Added Tax (VAT) on financial transaction charges should be borne by the banks and financial institutions and not customers, the Tanzania Revenue Authority (TRA) has maintained.

TRA Commissioner General (CG) Alphayo Kidata has pointed out that the financial institutions should have sought clarification from the revenue authority before misleading the public. He was speaking to the ‘Daily News’, when this newspaper sought clarification on the controversy surrounding the new charges.

Referring this reporter to an advertisement published in yesterday’s issue of “Habari Leo” maintaining the TRA position, Mr Kidata wondered why the same banks did not involve the public on the fees they charge.

ADVERTISEMENT

“How comes these banks have not provided public notices when imposing charges on financial transactions but found it necessary to do so in this issue? If there were any queries, why didn’t they seek clarification from the TRA?” he wondered.

He noted that the same banks, which have branches abroad, do not charge any fee when their customers withdraw money from ATMs or when issuing financial statement printouts, “only doing so in Tanzania”.

“They must respect their Tanzanian clients and stop stealing from them. Some of these banks have branches abroad and do not impose any charges on financial statement printouts or when withdrawing money from ATMs.

Why Tanzania then,” he queried. Mr Kidata stressed that the 18pc VAT is levied on charges received by the banks and other financial institution after providing financial services to customers.

Previously, the financial institutions pocketed all the service fees without being taxed. Several banking institutions had taken to the media announcement, indicating an increase in service charges as a result of the new VAT Act of 2014 amended recently.

In the Public Notice advertisement assigned by the TRAs CG, titled clarification on ‘VAT on Financial Services’ it went on to say that the recently amended VAT Act of 2014 will be levied on all fees charged by banks from its customers.

The public notice allayed fears raised from reports circulating in the social media that the 18pc VAT will be levied on consumer deposits.

“This is not true; the 18pc VAT will be levied to service fees charged by banks and other financial institutions,” read the public notice in part. Citing an example, TRA noted that if the fees charged on a financial service is 1,000/-, the VAT thereon would be 152.50/- and the bank would remain with 847.50/-.

The VAT amount of 152.50/- will be collected and remitted to the government by the respective bank or financial institution. TRA further noted that that reports issued by one bank operating in the country, instructing its customers to pay the expected VAT in cash over the counter if the customer does not have an account with the bank that the respective transaction was wrong.

“VAT charges shall be instituted and collected in the normal way as fees on financial services are currently being collected,” the public notice read in part. TRA has also directed all banks that issued misleading information to the public to refrain from doing so and correct the reports issued to the public and publish the correct information.

The controversy as to who should carry the 18pc VAT emerged after Bank of Tanzania (BoT) Governor Professor Benno Ndulu supported banks and financial institutions that the tax should be borne by customers.

–

Credit: All Africa

Related Posts

Agribusiness

Agribusiness entrepreneurs must take advantage of AfCFTA – ADB MD.

bycitibusinessnews

The Managing Director of Agricultural Development Bank Plc, Dr. John Kofi Mensah has disclosed that the African Continental Free Trade...

Read more

Inflation, debt, and forex crisis is pushing many African economies to the brink – IMF warns

Africa’s internet economy to cross $180 billion by 2025: Report

Regional economic cooperation needed to enhance Africa’s competitiveness – Bawumia

As Nigeria’s inflation rate accelerates to 17.71%, the World Bank warns millions could face extreme poverty

Modern airline tickets design with flight time and passenger name. Plane tickets vector pictogram. Airline boarding pass template. Vector illustration. The concept of air transportation

Ticket prices to rise following B.A schedule change on Accra-London-Accra route

Bawumia calls for more AfDB support as African economies battle global challenges

Next Post

Air travels safe despite brawl over land invasion - GCAA

Video on Demand: Business Weekly

ADVERTISEMENT
Citi Business News

© 2019 Citi Business News - CitiBusinessNews.com by CNR Digital.

Navigate Site

  • Home
  • News
  • Business
  • TECHNOLOGY
  • INTERNATIONAL
  • FEATURES
  • Videos

Follow Us

No Result
View All Result
  • Home
  • News
  • Business
  • TECHNOLOGY
  • INTERNATIONAL
  • FEATURES
  • Videos

© 2019 Citi Business News - CitiBusinessNews.com by CNR Digital.