The Industrial and Commercial Workers Union (ICU) is advocating for a reduction in the 25% corporate tax on rural banks, citing negative impacts on their operations and service delivery. Moreover, ICU seeks the government’s assistance in recovering locked-up funds and revitalizing the financially distressed Produce Buying Company to support farmers and workers.
The Industrial and Commercial Workers Union (ICU) has urged the Bank of Ghana to reconsider the 25 percent corporate tax that affects rural and community banks in the country. ICU argues this tax has significantly increased operational costs, leading to diminished service quality in these banks. During a speech in Tamale, General Secretary Morgan Ayawine highlighted the negative impact of such fiscal policies on the sustainability of rural banking.
Ayawine stated, “Some of the fiscal policies seem to create and work against the growth and sustainability of the rural and community banks… the imposition of the 25 percent corporate tax on their returns undoubtedly affects their growth, development and sustainability.” He emphasized the need for the Bank of Ghana to reassess this tax to lessen its operational burden on these banks.
The ICU General Secretary also raised concerns about the stranded funds of rural banks in Gold Coast Investment Company, stating these funds hinder their operations. He called for government intervention to release these locked-up assets, enabling banks to continue their business effectively in the financial market.
In addition, Ayawine highlighted the need for government support to revive the Produce Buying Company (PBC), which he described as financially distressed. He stressed that urgent funding is necessary for PBC to return to profitability, which in turn would benefit farmers and workers reliant on the company for stability in the agricultural sector.
He noted, “It is not good for this once vibrant company set up with the nation’s scarce resources to collapse and pass into oblivion.” His plea emphasized the importance of government action to bail out PBC to restore its business operations.
The ICU’s appeal to the Bank of Ghana underscores the pressing need to evaluate the ongoing impact of corporate taxation on rural banks’ sustainability. Additionally, the revival of the Produce Buying Company is deemed critical for the agricultural community. Government intervention is crucial to ensuring the viability of these entities in the financial landscape.
Original Source: 3news.com
