25% corporate tax will crush rural banks – Board Chair

Board Chairman for the Ahantaman Rural Bank Limited in the Western Region, Vincent Blaychie Essien has appealed to the Finance Ministry and the Ghana Revenue Authority to consider reducing the 25 percent corporate tax imposed on the 142 rural banks across the country. This according to him will keep the banks in business and enable them to help the rural poor. Speaking at the bank’s 29th Annual General Meeting at Agona Nkwanta in the Ahanta West District, Mr. Essien noted that “government, Finance Ministry, GRA and all other stakeholders should consider reducing the 25 percent corporate tax to enable rural banks stay in business and continue to support rural folks.” Mr. Essien, whose banking credentials are hailed by many industry watchers continued that “rural banks by their nature and the areas they operate require government’s intervention from time to time. Fuel Prices and utility bills are relatively high. 25 percent corporate tax has been imposed on rural and community banks. Deposit mobilization continues to be at a higher cost to banks as interest rates still remain relatively high. These indicators have the tendency to negatively affect the capacity building of rural banks.” Rural Banks across the country are currently being charged a tax rate of 25 percent which was some 300 percent increment from the initial 8 percent. Other executives in other rural banks have expressed similar sentiment since the rate was introduced somewhere last year.


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