Chief Executive Officer of Amenfiman Rural Bank, Alexander Asmah has warned that the current Corporate Tax Rates in the country could cripple rural banks.
Mr Asmah is concerned this could affect efforts to rope rural folk into the formal financial sector.
Rural banks are currently charged a Tax Rate of 25 percent – that’s a 300 percent increase from the initial 8 percent.
“For the Amenfiman Rural Bank, for example, we have over 15000 people on microlending that have no guarantee or collateral. They could not have gone anywhere else for money and we have put all these people into business,” he said.
He said they enabled 15,000 households to feed their families, take their children to school so,”government should look at these and do something about the 25 percent in corporate tax rate.”
“We are not saying government should not increase the tax rate, but at least they should do it gradually. From 10 percent to 12 percent and it can go up to 15 percent,” Mr Asmah said.
He believes rural banks will be able to support more rural communities and Ghana as a whole if they are considered with the rate.
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