Government has re-introduced taxes on selected financial services provided by banks in the country, still set at 17.5%. This follows the implementation of the new VAT on fee-based financial services on December 29, 2014. According to a letter sighted by Joy Business and copied to all banks in the country, the institutions are required to charge the tax from last Monday. The tax which was introduced earlier this year was put on hold because of some concerns by players in the financial sector. However Finance Minister, Seth Terkper, in the 2015 Budget announced the tax would be brought back by January 2015. Below is a list of items that would attract the tax: CURRENT ACCOUNTS (Foreign/Local) - CORPORATE BODIES ONLY 1. Current Accounts (Foreign /Local) 2. BANK DRAFT (PAYMENT ORDER) 3. STOPPED CHEQUES 4. RETURNED CHEQUES 5. COMMISSION ON TURNOVER 6. OVERDRAFT PROCESSING OR RENEWAL FEE 7. REVOLVING ACCEPTANCE CREDIT 8. ARRANGEMENT FEE FOR FACILITIES 9. STATEMENTS AND CERTIFICATES OF BALANCE 10. CLEARING CHARGES 11. CHEQUES FOR COLLECTION 12. STANDING ORDERS 13. TELEPHONE BANKING 14. SAFE CUSTODY 15. CHEQUE BOOKS - Sale of cheque leaflet - Replacement of Lost Cheque Book 16. DEBIT CARDS AND CREDIT CARDS 17. REVOLVING CREDITS 18. COLLATERAL MANAGEMENT 19. TRANSFER OF DOCUMENTS TO OTHER BANKS 20. GUARANTEES/BONDS/TENDER/PERFORMANCE 21. REQUEST FOR FOREX DRAFTS 22. OUTWARDS TRANSFER: SWIFT/TELEX - Drafts/Money Orders - Customer 23. TRAVELLERS CHEQUES, DRAFTS 24. CHEQUE LODGEMENTS 25.EVACUATION FEE (CASH-IN-TRANSIT) 26. UNPAID STANDING ORDER 27. CLOSURE OF ACCOUNTS 28. REMOTE BANKING SERVICES - Online Banking (Internet) - E-statements - E-clients - Phone banking - SMS banking - Mobile Banking - Monthly subscription - Financial Transaction Fee 29. LENDING FEES - Commitment Fee (Arrangement fee, Processing fee, facility fee) - Processing Fee - Property Valuation Fee (Open market value) - Guarantee Commission - Bid Security - Bank Credit Letter (Letter of Intent) - Mobilization Guarantee - Retention Guarantee - Performance Bond - Default or restructured 30. OTHER LOANS, EXCLUDING SALARY ADVANCE - Arrangement Fees - New Loans - Top-Ups - Early Settlement Fees 31. LETTERS OF CREDIT (IMPORTS) Establishment Commission - Arrangement Fee -Presentation under L/C Drawings Amendments: - Increase in Amount - Extention of period - Extention of period - another quarter - Discrepancy Other amendments: 32. DOCUMENTARY BILLS FOR COLLECTION (IMPORTS) Handling charges - customers Negotiation Commission - Advice of fate - Bills deleted - Protest Payment Commission - Holding charges (per quarter) Prior Approval - Customers with: - Own Resources - Telex/Cable charges - Swap charge Copyright © 1994 - 2015 GhanaWeb. All rights reserved.
Posted on: Sun, 04 Jan 2015 13:22:58 +0000
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