List All Of Ghana's Banking Industry's Non-Core Services

If ever there was a stage in Ghana's history, thus far, when it needed to mobilise savings for national development, this must be it. Alas,  as a lower middle-income nation, Ghana no longer qualifies for concessionary loans.

 We therefore need to become a nation of regular savers - whose aggregated savings can be harnessed by banks for onward lending to businesses and individual entrepreneurs. It would be disastrous for our national economy, were  potential savers to elect to stash their cash under mattresses - and in safes at home and inside their business premises.

That is why nothing must be done to erode public confidence in banks in Ghana. Yet,   there are many ordinary people in Ghana, who use banks,  who  are now confused about what precisely constitutes non-core services rendered by banks, and which will now attract a value added tax (VAT) rate of 17.5%.

If that confusion is allowed to persist, it will eventually  lead to the closure of many savings accounts  in banks across the country - by savers scandalised that  profligate politicians now propose to tax hard-earned cash in personal savings accounts, put aside by thrifty folk, for a rainy day: as well as tax funds in current accounts and bank loans.

To prevent such a run on banks from occuring in widespread fashion,  the authorities must list (item by item) all the VAT-rated non-core services delivered by banks in Ghana, without exception - and ensure that that information is disseminated nationwide by the press and electronic media.

It is unfortunate that a measure that was never meant to be applied to savings accounts, current accounts and bank loans, was not explained properly to the general public - and apparently not even to the banks: if what some of them say is to be believed.

To ensure that there is no confusion when the measure finally takes effect, a list of every non-core service performed by banks in Ghana, which will now attract 17.5% VAT, must be displayed prominently in all branches of banks,  savings and loans companies and other micro-credit firms in Ghana.

And to avoid any ambiguities,  a separate list of the zero-rated core-services performed by banks, which will not attract any VAT, must also be displayed in those selfsame branches. Banks play an important role in our economy,  by mobilising savings for the financing of projects - and for that reason it is  vital that  nothing is done to erode public confidence in them. A word to the wise.