Following the general out cry on the introduction of the 16.5% VAT on some banking services, banks have reduced fees and charges after holding bilateral talks between the Central Bank and the commercial banks.

The remarks were made on Monday at Central Office of Information (COI) in Lilongwe during a press briefing jointly held by the Ministry of Information, Malawi Revenue Authority ( MRA), Reserve Bank of Malawi and the Bankers Association of Malawi.

The RBM Governor Wilson Banda, said the Central Bank has been engaging the concerned parties on the matter.

“The discussions have yielded good results as most of the banks have reduced by 50% which will have positive developments to Malawians ” he said.

On her part,Acting Chief Executive Officer for the Bankers Association of Malawi Lynes Mkungula said that the VAT is still there but it has been absorbed, thereby reducing the burden on the consumers.

On 1st November this year,the commercial banks introduced the 16.5% VAT on some banking services like ATM charges, internet banking charges and production of the banking statements among others.