The cost of banking services is set to go up as financial institutions factor in the new tax on transaction fees. Kenya Bankers Association has advised its members to start collecting the 10 per cent excise duty on financial services on behalf of the government.(As per notice issued to the banks and customers) The tax was introduced through Finance Act, 2012 with slight amendments in the Finance Bill 2013. The service fees to be taxed include fees and commissions charged on money transfer services and other bank fees, charges and commissions, excluding interest. This cost will be passed on to banking and mobile services consumers.Safaricom has already revised upwards the fees charged for sending or withdrawing money from Mpesa saying the levy is a consumer tax and so has to be passed on to the customers. This will also increase transactions fees charged by savings and credit societies after the government revised the definition of financial institutions, affected by the new exercise duty, to include Saccos.
Posted on: Fri, 12 Jul 2013 15:49:54 +0000
Trending Topics
Recently Viewed Topics
© 2015