Rural and Community Banks in the country are calling for a review of the corporate tax which stands at 25%.
The corporate tax on the annual income of the rural and community banks was increased from 8% to 25% after the introduction of the new income tax Act 2015, Act 896 in September 2015.
Managing Director of ARB Apex Bank Limited, Kojo Mattah said the increment is making the operations of the banks very difficult.
“Corporate tax for rural and community banks was increased from 8% to 25% and the rural banks have been talking about it appealing to government to take a second look at it.
“The reason being that it is affecting their operations especially in the difficult terrain that the banks operate,” he added.
Kojo Mattah called on the government to reduce the corporate tax to allow the rural banks to use the difference to help their communities as part of their corporate social responsibility.
The rural and community banks were created among other reasons to mobilize savings in the rural communities and channel them into the provision of credit to rural microenterprises, agro-based firms and cottage industries, monetize the rural communities by way of inculcating in rural people the culture of formal banking and serving as tools for the growth and development of microenterprises in the rural communities to facilitate rapid rural industrialization for the overall enhancement of the national economy.