The Managing Director of the ARB Apex Bank, Kojo Mattah, has called on government to reduce corporate tax of 25 percent for Rural and Community Banks.
The ARB Apex Bank MD described the increment from 8 percent to 25 percent as excessive. The tax went up from 8 percent to 25 percent in 2016 as contained in the fiscal policy of the government at the time.
“We find this increase to be excessive and we have made several appeals to the Ministry of Finance and the powers that be, to take a second look at it,” said Kojo Mattah.
He argued that when the taxes are reduced, the banks would have the opportunity to support socio-economic development directly in the various communities.
He stressed: “We know the government needs taxes to develop the country and we are willing to pay taxes. However, we think if the tax is reduced for the Rural and Community Banks, the difference could be used in the community in which they operate to meet some other social obligations; it could be health, education, security that will directly affect the catchment area.”
Kojo Mattah spoke in an exclusive interview with Joy News on the sidelines of the opening of the 17th National Managers’ Conference for Rural and Community Banks in Ho.
The ARB Apex Bank Managing Director also waded into the recent fallout of the collapse of some ingenuous banks calling on customers to exercise restraints instead of resorting to panic withdrawals.
Mr. Mattah stressed that no bank can withstand panic withdrawals and that panic withdrawals have the tendency of totally collapsing the entire banking sector.
“If there is a rush on the financial institutions, the whole system will collapse. No bank can withstand panic withdrawals. So I will encourage all our citizens to exercise restraints and believe in what the Central Bank is doing to sanitise the system,” the MD reiterated.
Minimum Capital Requirement
As the Central Bank takes steps to sanitise the banking sector, the ARB Apex Bank is assuring the banking public and the regulator that all Rural and Community Banks (RCBs) will meet the minimum capital requirement of GHS1m by the December 2018 deadline as issued by the Bank of Ghana.
Kojo Mattah says some of the rural Banks have already exceeded the new Minimum Capital Requirement.
The 17th National Managers Conference, which had brought together managers of rural and community Banks across the country, is on the theme- Rendering Service with Passion: A Panacea for Competitive Advantage.
The ARB Apex Bank is a ‘mini’ Central Bank for Rural and Community Banks (RCBs) in Ghana. Its shareholders are the RCBs.