Minister of Finance Felix Mlusu has warned commercial banks against transferring 16.5 percent Value Added Tax (VAT) to customers, adding this is against the law.

Mlusu told the press that the statement Bankers Association of Malawi (BAM) released, is a clear indication that even banks do not understand the Act, as the VAT only affects the money banks have been deducting from customers.

He has since called on bank customers who have been affected with any bank deduction of VAT, to report such entities to the Reserve Bank of Malawi, and such deductions will be refunded.

On the messages banks have sent to customers, Mlusu said the charges should not in any way, affect customers.

Source:MBC