Rural and community banks (RCBs) in the country want government to reduce their corporate tax to 15 percent from the current 25 percent.
The RCBs cried out to government at the 20th Managers Conference.
Corporate income tax went up from 8 to 25 per cent in 2016.
ARB Apex Bank has indicated that the increase has slowed down investment of members in Corporate Social Responsibility (CSR) programmes.
Acting Managing Director of the ARB Apex Bank Alex Kwasi Awuah said a reduction in the corporate tax will help bolster capital formation of the rural and community banks.
“We have been calling on the government to reduce the corporate income tax to 15 percent from 25 percent. This will help the RCBs to increase their Corporate Social Responsibilities.”
He continued, “A reduction will improve capital formation to further sustain the sector.”
Mr Kwasi Awuah further noted that reducing the corporate tax of RCBs to15 percent will help promote financial intermediation and inclusiveness.
Board Chairman of ARB Apex Bank Dr. Anthony Kwesi Aubynn said a reduced corporate income tax is likely to increase profitability.
“Lower Corporate Tax for RCBs is key in ploughing back profits,” he said.
The Omanhene and President of the Kwahu Traditional Area, Daasebre Akuamoah Agyapong, also added his voice to the call for reduction in corporate tax for rural and community banks.
“This will enhance the capital of the Rural and Community Banks and make them competitive and help improve CSR,” he noted.