Reconsider reduction in corporate tax – RCBs Association to government

RCBs paying 25 percent as tax on their annual income

Association wants government to consider a reduction

Rural Community Bank offers assistance to SMEs

The Association of Rural Banks Ghana has called on government to reconsider a reduction in the corporate tax rate for rural and community banks.

According to the Executive Director of Association, Comfort Owusu, the hike in the corporate tax has made it difficult for the operations of rural banks.

In an interaction with Daily Graphic, Owusu implored government to reconsider a downward revision of the corporate tax rate to enhance the development of RCBs

“If government wants rural and community banks to play the role they were set up to play, then government must reverse it to the eight percent or at most peg it at 15 percent and this must be done as soon as possible because it is really suffocating us,” she stated in an interview with the newspaper.

Meanwhile, up until the passage of the new Income Tax Act 2015, (Act 896) in 2015, RCBs operating in the country were subject to an 8 percent tax on their annual income.

Presently, RCBs now pay up to 25 percent of corporate tax on their annual income.