Rural and community banks renew calls to reduce corporate tax rate to at least 15%


The Association of Rural Banks (ARB) has renewed its appeals and appeals to 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 had hampered the development role of the BCRs, especially in their investments and corporate social responsibilities – providing basic infrastructure, financial and material support to individuals and institutions. .

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

We always appeal to the government to come to our aid by reducing taxes to maybe around 15 percent ”.

Executive Director of the Association, Comfort Owusu

National President Kwame Owusu Sekyere Esq said their woes are compounded by the suspension of dividend payments which has 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 BCRs in order to allow them to more visibly assume their development responsibilities.” “

He continued, “We wish to appeal to the BoG to allow the dividend payment provision of Law 930 to prevail as internal capital accumulation has been substantial during the period of suspension. “

Owusu Sekyere and Comfort Owusu reiterated it during the 8e Ghana Rural Banks Association National Rural Banking Week celebration held in Ejisu in the Ashanti region.

It was under 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, wants the main actors in the rural and community banking sector to use their various strengths to create appropriate synergies for the sector.

“I’m referring here to 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 Rural Banks to force its members to meet acceptable standards of ethics and performance. “

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.

Rural and community banks renew calls to reduce corporate tax rate to at least 15%
Interim Managing Director, Alex Awuah

Collaborations

The management of ARB Apex Bank PLC says that one of its main strategies to be deployed from 2022 is to deepen the collaboration between itself and the Association of Rural Banks.

Acting CEO Alex Awuah says there is a need to increase collaboration at events and other public platforms to reflect the strength of our partnership.

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

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

Once again, greater collaboration between ARB Apex Bank PLC and the Association of Rural Banks would give real meaning to the motto of ARB Apex Bank and RCB, which is “TOGETHER FOR PROGRESS”.

Rural and community banks renew calls to reduce corporate tax rate to at least 15%

Progress in RCB

The number of rural and community banks now stands at 147 with the approval of two new banks, with nearly 900 branches, according to the Bank of Ghana.

He observed that this development has 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.

During this time, the concept of rural banking has seen a turbulent course since the initial period of introduction.

However, due to periodic policy changes and reforms by the BoG, various supportive intervention initiatives by successive governments, strategic planning by boards and management, loyalty and commitment of staff and public confidence, have gradually turned the fortunes of RCB.

The ARB says that it is the responsibility of all stakeholders to ensure that the BCRs provide financial intermediation to communities to stimulate economic initiative, thus promoting an improved standard of living of the population.

“… measures that would make RCBs more resilient to stay on top of any possible event, which could adversely affect normal operations.” “


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