The Association of Rural Banks has said the existing 25 per cent corporate tax on its members could stifle their growth.
 
National President, Dr. Nana Akowua Boamah, acknowledged that although tax is essential for national development, last year’s increase of the tax from eight per cent to 25 per cent as astronomical.
 
“We are partners with government, we’re in rural development. If we pay 25% of our profit to the government, how much will be left to take care of stakeholders and people in our communities,” he bemoaned.
 
He said, the development will limit the capacity of the banks for social responsibility projects in local communities.
 
Dr. Akowuah Boamah was speaking at the 31st Annual General Meeting of Okomfo Anokye Rural Bank at Wiamoase in the Ashanti Region.

According to the World Bank, rural development is a strategy meant to improve socio-economic life of the rural poor.

Rural Banks, therefore, channel credit to productive ventures, especially, in their operational catchment areas.

Dr. Akowua Boamah said the tax burden is taking a toll on banks and threatens the sustainability of social support services.

Okomfo Anokye Rural Bank acknowledges electronic banking is now an integral component of core banking services.

Board Chairman, Kennedy Obiri-Yeboah, said steps were being taken deploy modern technology to make its services more attractive.
 
He was optimistic about this year’s economic outlook, and urged financial institutions to take advantage of the cedi stabilization to improve performance.