Bank VAT: NPP should not create fear and panic – Allotey Jacobs

A Central Regional Communications Director of the governing NDC, Bernard Allotey Jacobs, has described as mere propaganda attempts by the opposition to ‘poison’ the minds of Ghanaians as far as the introduction of a new banking tax is concerned.

There will be an introduction of a 17.5% new Value Added Tax (VAT) on banking services rendered to clients.

The 17.5% tax which is to be implemented in May, will cover services offered by financial institutions unless they decide to absorb the cost.

According to the Deputy Minister of Finance, the new tax is not going to affect salaries, savings, deposits, loans and payment with cheques.

Many critics have described the new tax as unfair and ‘wicked’ on the part of government, adding, it will lead to the collapse of many financial institutions.

But speaking on ‘Kokrokoo’ morning show, Allotey Jacobs said: “it has been well explained and so there is no need for people, especially the opposition, to create panic and fear. It is not nothing new.

Government needs taxes to develop the country. But people are taking advantage of it; using it as propaganda machinery…they should spare us.”