ICU Appeals to Bank of Ghana for Reduction of Corporate Tax on Rural Banks
The Industrial and Commercial Workers Union (ICU) has urged the Bank of Ghana to lower the 25 percent corporate tax on rural banks, as it negatively impacts their operations. ICU General Secretary, Morgan Ayawine, also expressed concerns about locked-up funds and called for government support to revive the financially troubled Produce Buying Company.
The Industrial and Commercial Workers Union (ICU) has urged the Bank of Ghana to reconsider the 25 percent corporate tax currently levied on rural and community banks. This tax has impeded these banks’ operational viability, leading to inadequate service delivery. ICU’s General Secretary, Morgan Ayawine, emphasized this issue during a speech to union members in Tamale ahead of their National Quadrennial Delegates Conference this August.
Mr. Ayawine stated, “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.” He implored the Bank of Ghana to reassess this tax in order to alleviate its detrimental impact on rural banks.
In addition, he expressed concern regarding the significant amounts of rural and community banks’ funds that are locked in investments, particularly at Gold Coast Investment Company. He stated, “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.”
Moreover, Mr. Ayawine called on the government to allocate resources for the revival of the Produce Buying Company (PBC) PLC. He remarked on its financial distress, asserting, “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.”
He concluded with a plea to the government, stating, “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.”
In summary, the ICU has voiced significant concerns regarding the 25 percent corporate tax on rural and community banks, which adversely affects their operations and service delivery. The union has also highlighted issues regarding locked-up funds and emphasized the need for government intervention in reviving the financially distressed Produce Buying Company. These actions are deemed essential for the sustainability and growth of rural banks and the agricultural sector at large.
Original Source: 3news.com
