The Industrial and Commercial Workers Union has requested a reduction in the 25 percent corporate tax on rural banks due to its detrimental effects on their operations. General Secretary Morgan Ayawine highlighted the need for policy reforms and called for the release of locked-up funds. Furthermore, he urged government support for the financially distressed Produce Buying Company to restore its viability.
The Industrial and Commercial Workers Union (ICU) has officially requested the Bank of Ghana to reconsider the 25 percent corporate tax imposed on rural and community banks. The Union asserts that this tax is adversely impacting the operational costs of these banks, leading to inadequate service delivery to customers.
During a recent address in Tamale, General Secretary Morgan Ayawine emphasized the need for policy reforms that support the growth of rural banks. He criticized the existing fiscal policies, particularly the corporate tax, for hindering the sustainability of these financial institutions.
Mr. Ayawine urged the Bank of Ghana to review the corporate tax rate, wishing to alleviate its effects on rural and community banking operations. Furthermore, he raised issues related to funds currently locked up in investments, notably with Gold Coast Investment Company, which he believes are detrimental to the banks’ functionalities.
Additionally, the General Secretary called for government intervention to release these funds, enabling rural banks to continue their operations effectively. He also highlighted the financial distress faced by the Produce Buying Company (PBC PLC), advocating for government support to restore its viability for the benefit of farmers and workers alike.
He appealed to the government to prioritize the revival of PBC PLC, stressing the importance of this once-thriving company in supporting various stakeholders. ICU aims to leverage this platform to seek an urgent bailout for PBC PLC, facilitating its return to operational success.
In summary, the Industrial and Commercial Workers Union has urged the Bank of Ghana to lower the 25 percent corporate tax on rural banks, citing its negative impact on operations and service delivery. Concerns regarding locked-up funds and the financial health of the Produce Buying Company have also been raised, with a call for government intervention. Overall, these actions are deemed essential for ensuring the sustainability and growth of rural financial institutions.
Original Source: 3news.com
