The Industrial and Commercial Workers Union has called for the Bank of Ghana to reduce the 25 percent corporate tax on rural banks, which has adversely impacted service delivery. Concerns were also raised regarding locked-up funds in investments. Additionally, urgent government support for reviving the financially distressed Produce Buying Company was requested to restore its operational viability.
The Industrial and Commercial Workers Union (ICU) has urged the Bank of Ghana to reduce the 25 percent corporate tax imposed on rural and community banks. This tax has increased operational costs, adversely affecting the quality of service provided by these banks.
Morgan Ayawine, General Secretary of ICU, highlighted these concerns during an address to union members in Tamale, ahead of the National Quadrennial Delegates Conference scheduled for August. He noted that certain fiscal policies hinder the growth and sustainability of rural banks, particularly the stringent corporate tax, which impedes their operational capabilities.
Mr. Ayawine also raised concerns regarding the rural and community banks’ capital being tied up in investments, specifically mentioning the situation with funds at Gold Coast Investment Company. He emphasized the need for government intervention to expedite the release of these funds, which would allow banks to operate effectively and maintain their relevance in the sector.
Additionally, the ICU General Secretary called for governmental support to revitalize the Produce Buying Company (PBC PLC), which is facing financial distress. He asserted the importance of resourcing this entity to restore its viability and profitability, noting its significance to farmers and workers alike.
In light of these challenges, Mr. Ayawine appealed for urgent government measures to assist PBC PLC, ensuring its return to a functional and productive state.
Overall, the ICU’s advocacy emphasizes the need for policy adjustments to enhance the operational landscape for rural banks and bolster essential state enterprises like PBC PLC.
In summary, the Industrial and Commercial Workers Union has called for a reduction of the 25 percent corporate tax on rural and community banks to help alleviate operational costs and improve service delivery. Furthermore, appeals have been made for the government to facilitate the release of locked-up funds affecting these banks and to provide vital support for the Production Buying Company, aiming to restore its viability. These measures are deemed essential for ensuring the sustainability of rural banking and supporting local farmers and workers.
Original Source: 3news.com
