The ICU is urging the Bank of Ghana to reduce the 25 percent corporate tax on rural banks, citing its negative impact on operations and service delivery. Concerns regarding locked-up funds and the need for government support for the financially distressed Produce Buying Company were also highlighted. Immediate action is necessary to ensure the sustainability and growth of these financial institutions.
The Industrial and Commercial Workers Union (ICU) has formally urged the Bank of Ghana to reconsider the 25 percent corporate tax imposed on rural and community banks. This tax burden has significantly impacted the operational costs of these institutions, leading to subpar service delivery. ICU’s General Secretary, Morgan Ayawine, emphasized the negative fiscal policies that hinder the viability of rural banks during an address to union members in Tamale, Northern Region, prior to the National Quadrennial Delegates Conference scheduled for August.
Mr. Ayawine pointed out, “Some of the fiscal policies seem to create and work against the growth and sustainability of the rural and community banks. A classic example… is the imposition of the 25 percent corporate tax… which undoubtedly affects their growth, development and their sustainability.” He urged the Bank of Ghana to reassess this tax to alleviate its adverse effects on the operations of these banks.
Moreover, Mr. Ayawine raised concerns regarding the locked-up funds of rural and community banks, particularly their investments with Gold Coast Investment Company. He indicated that these financial restrictions have severely restricted the operational capabilities of these banks and called on the government to facilitate the release of these funds so they can effectively conduct business.
Additionally, the General Secretary urged the government to allocate resources to revitalize the operations of the Produce Buying Company (PBC PLC). He highlighted the financial distress faced by this state-owned enterprise and stressed the necessity for government intervention to restore its viability and profitability, thereby providing relief to both farmers and workers affected by its decline. He stated, “It is not good for this once vibrant company… to collapse and pass into oblivion,” and appealed for expedited assistance to enable PBC PLC’s recovery.
The Industrial and Commercial Workers Union has articulated the pressing need for the Bank of Ghana to reduce the 25 percent corporate tax on rural and community banks, which is undermining their operational efficiency. Additionally, addressing the issue of locked-up funds and supporting the Produce Buying Company (PBC PLC) are crucial steps toward enhancing the sustainability of these vital financial institutions and assisting local economies. Thus, governmental and regulatory bodies must act promptly to facilitate these changes for improved financial stability.
Original Source: 3news.com
