Finance Bill 2026: Why gov't wants to impose 16% VAT on digital payments

The Bill proposes to remove VAT exemptions on money dealings and financial services, by introducing a 16% VAT on digital payment processing, transfers, and merchant acquiring services. In Simple Terms, this means that right now, when you move money or pay for things digitally, the processing fees charged by the technology companies are exempt from VAT. The government wants to remove this exemption and slap a 16% tax on those fees.