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Banks on edge over govt plan to tax loans

A teller attends to a customer in a banking hall. According to the proposed tax, banks will be required to register for VAT, issue tax invoices, and submit monthly VAT returns, which obligations they have previously been exempt from due to their dealings in VAT-exempt supplies.  PHOTO | FILE

What you need to know:

  • Experts warn that the proposal could significantly hamper business operations within the country, particularly for those relying on loans obtained through banks and other financial institutions.