ARB Apex Bank reiterated its calls for a reduction in the corporate tax of rural banks from 25% to 15%.
According to its acting managing director, Alex Kwasi Awuah, the current tax deprives many rural banks to finance many small businesses in rural areas.
Speaking to Joy Business on the sidelines of the Annual National Rural Bank Managers’ Conference in Kwahu-Nkwatia in the Eastern Region, Mr. Awuah said “the call to the government to consider reducing the tax. 25% to 15% is something we’ve been advocating for years now. In fact, as we all know, corporate tax was 8% at one point because rural banks were still seen as development agents in rural communities until I think in 2015 or 2016, it was increased to 25%.
“Since then, we have asked the government to consider reducing it to 15%. And this is important in the sense that when you look at the work of rural and community banks, they play a major role in terms of development. You go to those areas and they put in a lot of corporate social responsibility programs – they spend a lot on education, ”he said.
Mr. Awuah pointed out that most rural banks provided education support before the advent of free higher education, saying, “We spend on education, school infrastructure, health infrastructure, construction. of police stations across the country ”.
He also called for government support to help rural banks recover some stranded funds.
“We advocated that the government help us get the money [locked-up] back. The impact… This has had a significant impact on our operations and as we are also development agents, we believe that if our corporate tax rate is reduced it will help us build capital, improve our position as reserve and strengthen our banks.