ICU urges Bank of Ghana to reduce 25% Corporate Tax on rural banks

ICU urges Bank of Ghana to reduce 25% Corporate Tax on rural banks

The Industrial and Commercial Workers Union (ICU) has called on the Bank of Ghana to reduce the 25 percent corporate tax imposed on rural and community banks across the country.

According to ICU, this has affected the operational cost of those banks resulting in poor service delivery.

General Secretary of ICU, Morgan Ayawine made the call when he addressed members of ICU at Tamale in the Northern Region ahead of its National Quadrennial Delegates Conference slated for August this year.

“Some of the fiscal policies seem to create and work against the growth and sustainability of the rural and community banks. A classic example of such fiscal policy that militate against the ability of the rural and community banks to continue to effectively operate, is the imposition of the 25 percent corporate tax on their returns which undoubtedly affects their growth, development and their sustainability.”

“We therefore call on the Bank of Ghana to take a second look at the 25 percent corporate tax and reduce it so as to minimize its impact on the operations of the rural and community banks,” he urged.

Mr Ayawine expressed concern about the locked-up funds of the rural and community banks in some investments.

“The locked-up funds of the rural and community banks at Gold Coast Investment Company is a great concern as it is equally affecting the banks’ operations. We appeal to government to facilitate the release of the locked-up funds to help the rural and community banks prosecute their businesses and remain relevant in the banking sector of the economy,” he said.

The General Secretary of ICU also called on government to earmark funds to revive the operations of the Produce Buying Company.

” PBC PLC is one of the state-owned enterprises that is financially distressed and needs urgent resourcing and to make it once again viable and profitable as in times past to bring relief to farmers and the workers whose fate has been hanging in the balance for a long time now. It is not good for this once vibrant company set up with the nations scarce resources to collapse and pass into oblivion,” he said.

“In this light, we wish to use this platform to appeal to government to urgently bail out PBC PLC to enable it bounce back to business,” he pleaded.

The post ICU urges Bank of Ghana to reduce 25% Corporate Tax on rural banks first appeared on 3News.

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