Finance Ministry confirms VAT on non-core services offered by banks

Finance Ministry confirms VAT on non-core services offered by banks: The Finance Ministry has reportedly ended the long-standing debate on whether non-core services offered by banks would be taxed under the value-added tax (VAT) act, Al Mal reports. The ministry apparently said in an internal memo signed by Finance Minister Amr El Garhy that these services, which include fees on safety deposit boxes and trustee services, would be subject to the VAT, but that all core banking services would be VAT-exempt. Banks had lobbied last year for these services to be exempt from the VAT.