Ghana: RCBs renew calls to reduce corporate tax rate to at least 15%

The Association of Rural Banks (ARB) has renewed its call on the government to reconsider a reduction in the corporate tax rate for rural and community banks.

The corporate tax rate for RCBs has increased from 8% to 25% since 2016, which means that a quarter of their profits go to the state; a situation that continues to affect their operations.

ARB leaders complained that the rate hike has hampered the development role of the BCRs, especially in their investments and corporate social responsibilities, the provision of basic infrastructure, financial and material support to individuals and institutions.

“… even though we have been talking about it since 2016, we are still pleading with the government, the corporate tax of 8-25% is too high,” said the association’s executive director, Comfort Owusu.

“We are still asking the government to come to our aid by reducing the tax to around 15%,” she said.

The association’s national president, Mr. Kwame Owusu Sekyere, said their woes were compounded by the suspension of dividend payments which had blocked the stated capital increase of some RCBs.

“… we maintain the call to the government to reconsider the downward revision of the corporate tax rate for the BCRs in order to allow them to more visibly assume their responsibilities in terms of development”, a- he declared.

He said: “We wish to appeal to the Bank of Ghana to allow the provision for the payment of dividends in Law 930 to prevail as the internal capital accumulation has been substantial during the period of suspension.”

He was speaking at the Ghana Rural Banking Association’s 8th National Rural Banking Week celebration held in Ejisu in the Ashanti region.

It was on the theme “The resilience of rural and community banks in the era of the COVID-19 pandemic”,

The head of the other banking supervision at the Bank of Ghana, Yaw Sapong, called on key stakeholders in the rural and community banking sector to use their various strengths to create appropriate synergies for the sector.

“I’m referring here to the individual banks, the Association of Rural Banks and the ARB Apex Bank. Leverage your individual and collective strength to move the industry forward. In particular, I employ the Association of Banks rural areas to maintain its members at ethical and acceptable performance standards, ”he said.

He said the Bank of Ghana will continue to play its role to improve and support the growth of rural and community banking services in Ghana.

ARB Apex Bank Acting Managing Director Alex Awuah said there is a need to strengthen collaboration at events and other public platforms to reflect the strength of the partnership among all stakeholders.

“As we all know, the ‘ARB’ on our behalf is the short form of the Association of Rural Banks, the official advocacy body for BCRs in the country. We therefore regard the Association as the premier partner. level in all of our because we know that without the Association of Rural Banks there would be no ARB Apex Bank PLC, ”he said.

He said: “We have therefore decided to engage more and ensure that our programs and activities, especially our public engagement and visibility projects, are more consultative to help our member banks get the most out of them. left. “

He observed that this development had improved customer reach, employment opportunities, technology deployment and led to better delivery of financial services within our local communities.

“Our quest to build strong rural and community banks must therefore be based on sound and effective corporate governance that promotes transparency with stakeholders, ensures ethical behavior, protection and judicious use of company assets. and institutes appropriate internal controls and systems, ”Sapong said.

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