The ICU has urged the Bank of Ghana to lower the 25% corporate tax on rural banks, citing impact on service delivery. Morgan Ayawine emphasized the detrimental fiscal policies affecting sustainability. The ICU also seeks the government’s intervention to release locked-up funds and revitalize the Produce Buying Company.
The Industrial and Commercial Workers Union (ICU) has petitioned the Bank of Ghana to reconsider the 25 percent corporate tax levied on rural and community banks. This tax burden has led to increased operational costs, adversely impacting service delivery. ICU General Secretary Morgan Ayawine articulated these concerns during an address in Tamale ahead of the National Quadrennial Delegates Conference scheduled for August.
Morgan Ayawine pointed out that existing fiscal policies hinder the growth and sustainability of rural and community banks. He specifically called attention to how the 25 percent corporate tax undermines the banks’ ability to operate effectively and thrive within the financial sector. He urged the Bank of Ghana to reassess this taxation policy to alleviate the financial strain on these institutions.
In addition, Mr. Ayawine expressed distress over the immobilized funds held by rural and community banks in various investments. He highlighted the situation involving Gold Coast Investment Company, emphasizing that these locked funds are detrimental to the banks’ operational capacity. He implored the government to facilitate the release of these funds to enable banks to function effectively.
Furthermore, Ayawine appealed for governmental support to revitalize the operations of the financially troubled Produce Buying Company (PBC PLC). He outlined the historical significance of this enterprise, stressing the necessity of urgent financial intervention to restore its viability and provide support to farmers and workers dependent on its success. He firmly requested that the government take immediate action to provide a financial bailout for PBC PLC.
In conclusion, the Industrial and Commercial Workers Union advocates for a reduction in the 25 percent corporate tax on rural banks to enhance their operational efficiency. The Union also seeks assistance for the locked-up funds affecting these banks and emphasizes the importance of resourcing the Produce Buying Company to sustain its operations. Urgent intervention is deemed necessary for both the banking sector and the agricultural support system in the region.
Original Source: 3news.com
