Review 25% corporate tax for RCBs —Government urged
The Upper East Chapter of the Association of Rural Banks (ARBs) has called on the government to review downwards the 25 per cent corporate tax imposed on Rural and Community Banks (RCBs) to help save the industry from collapse.
The President of the Chapter, Mr Cletus Azaabi, made the call at the 19th annual general meeting of the Builsa Community Bank Limited, held in Sandema in the Builsa District of the Upper East Region.
Mr Azaabi indicated that the government, four years ago, imposed the 25 per cent corporate tax on RCBs, stressing that the huge corporate tax was gradually killing the RCBs in the country.
“The little profits declared by the RCBs which could have been ploughed back into the banks operations to meet the capitalisation requirements, as well as finance other expansion projects of the banks are being paid to the government,” he said.
The president stated that the negative reportage on social media that the BoG was initiating measures to liquidate some of the RCBs in the country caused panic withdrawals.
He assured customers that all the RCBs in the region had met the minimum capital requirement of the BoG and were in good standing.
“I wish to use this platform to announce that the five RCBs in the region are among the top RCBs in the country with good corporate governance and accountability structures that will not be affected by any clean up exercise by the BoG at any point in time,” the president assured.
The Regional Minister, Ms Paulina Patience Abayage, in a speech read on her behalf, commended the Builsa Community Bank for its sterling performance, particularly in the areas of agriculture, health and education.
She entreated the bank to help the government in its implementation of the Planting for Food and Jobs and the Rearing for Food and Jobs programmes to enhance food sufficiency.
The Chairperson of the bank, Mrs Akanbangbiem Agamu Asokea, said the bank in 2018 recorded GH¢895,848 net profit, as against GH¢702,727 in 2017.
She said the bank’s stated capital at the end of 2018 stood at GH¢1.54 million, which exceeded the mandatory minimum capital requirement of GH¢1million announced by the BoG.
FROM SAMUEL AKAPULE, SANDEMA