Prospects for inclusive economic wealth creation are fast turning into an illusion for poor Malawians following an announcement by the Bankers Association of Malawi (BAM) that it will introduce a 16.5 percent Value Added Tax (VAT) on some banking services effective November 1, 2021.
It is obvious that the introduction of VAT on banking services will only work to impoverish low incomers who are already weighed down by the unprecedented rise in prices of essential goods and services.
But BAM, in its press release circulating on the social media, justified its decision, saying it is in accordance with the amendment of the recent sitting of parliament.
“BAM, on behalf of its members, CDH Investment Bank, Ecobank Malawi Ltd, First Capital Bank, FDH Bank PLC, Standard Bank of Malawi PLC, MyBucks Banking Corporation, National Bank of Malawi PLC and NBS Bank Ltd, would like to inform the general public that from 1st November, 2021, some banking services will attract Value Added Tax (VAT) at 16.5%. This is in accordance with the amendment of the VAT Act during the recent sitting of parliament,” reads the statement, which has been signed by BAM Acting Chief Executive Officer Lyness Nkungula.
Meanwhile, some Malawians have taken to the social media where they are expressing anger and disappointment with the development.
“Tipumira kuti aMalawi? Nthawi zonse tidzingomva za VAT basi?” asked Robert Banda on News and Reports Forum.Follow and Subscribe Nyasa TV :