Association of Banks dismisses claims of 7% tax on card transactions
By Praisebell Rosemond Larbi
The Ghana Association of Banks (GAB) has refuted claims circulating on social media and in some sections of the media that the government has directed commercial banks to impose a 7 per cent tax on all international card transactions.
In an interview, the Chief Executive Officer (CEO) of the Association, Mr John Awuah, described the reports as “completely false and misleading.”
“I can confirm that the Ghana Association of Banks and its member banks have not received any directive from the Government of Ghana or the Bank of Ghana (BoG) to deduct any form of tax on card transactions,” Mr Awuah clarified.
According to him, while electronic commerce transactions can, under certain circumstances, attract statutory charges, no such instruction or tax policy has been issued by either the Ministry of Finance or the central bank.
Mr Awuah explained that the misinformation may have originated from a recent regulatory directive by the Bank of Ghana that sought to standardise pricing models for payment card transactions across financial institutions.
“The directive had absolutely nothing to do with taxation. Its purpose was to enhance clarity, consistency and consumer protection in the way banks charge for foreign currency card transactions. In fact, it rather led to a reduction in some of the charges previously applied to cross-border card transactions,” he stressed.
Market Assurance
Addressing concerns that the false reports could discourage the use of debit and credit cards, Mr Awuah assured the public that the banking industry remains transparent and customer-focused.
“Our member banks are committed to clear communication with their clients, and their pricing guides are readily available. Customers are unlikely to notice any change, as there has been no increase in transaction costs,” he said.
Mr Awuah emphasised that the Bank of Ghana’s directive has instead resulted in a reduction in the applicable charges on international card transactions, not the introduction of any new tax.
He thanked the public for exercising restraint and verifying information directly from credible sources.
“I appreciate those who reached out to the Association and their respective banks for clarification before reacting to the social media post,” Mr Awuah stated.
He further urged customers to verify financial information from official sources before sharing or acting upon it.
“Always confirm with your bank or trusted institutions such as the Ghana Association of Banks. Misinformation can cause unnecessary panic and confusion,” Mr Awuah cautioned.
He also added that no new tax has been introduced on card transactions and advised the public to rely on official communication channels for accurate updates from the banking sector.
