The Malawi Revenue Authority (MRA) has moved in to clarify the 16% VAT on non-banking services.

The development follows a recent statement from Bankers Association of Malawi (BAM) making trends on Social Media indicating that banking services will now attract 16%.

Addressing the Press in Blantyre, Deputy Commissioner for the MRA Henry Ngutwa noted that the charges are strictly on non-banking services offered by banks, but not what is legally stipulated as a banking service.

Ngutwa said the statement from BAM is misleading and misinforming the people.

Ngutwa has  since assured the public that the 16 percent is not supposed to push banks to adjust the prices and charges, because it included in the already existing charges on the non-banking services.