Rural banks appeal for reduction in corporate tax
The Association of Rural Banks (ARB) has appealed to the government to consider a reduction in corporate tax for rural and community banks to enable them to carry out their respective corporate social responsibilities (CSR) in their catchment areas.
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The association said it was part of their mandate to perform CSR at their various operational and catchment areas, but said the increment of corporate tax from eight per cent to 25 per cent had affected the performance of such a responsibility.
The Executive Director of ARB, Comfort Owusu, made the appeal at the 42nd Annual General Meeting (AGM) of the Manya Krobo Rural Bank PLC at Odumase-Krobo in the Lower Manya Krobo Municipality in the Eastern Region.
The bank which was established in 1978, currently has branches at Akuse, Somanya, Ashaiman, Ashyie, Madina, Abanse, and the Head Office, near Odumase-Krobo.
The Board of Directors of the bank, Mercy Mamle Tetteh (Chairperson), Benjamin Tetteh Apo (Vice-Chairperson), and Dr Desmond Afutu Nartey, have all retired.
They have since been replaced by Dr Padikor Madjitey, a Senior Assistant Registrar at the University of Environment and Sustainable Development at Somanya; Augustus Lartey Djabatey, a Cluster Manager at the Consolidated Bank, and Barbara Ama Dede Okai Tettey, a Senior Compliance Manager for Corporate and Investment and Affiliates of Stanbic Bank.
The shareholders
Other board members include Ebenezer Akumatey (Head, Banking Operations), Edward Nartey Tetteh, Richard Nartey, Monica Padi, Ernest Kpogli and Raphael Kwame Tawiah.
Commendation
Mrs Owusu commended the Manya Krobo bank for the support it offered to people at its catchment areas, as well as adhering to governance directives by the Bank of Ghana in spite of the financial challenges facing rural and community banks in the country.
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“Banks are to meet the needs of its catchment areas and communities they operate in, and you are doing exactly that,” she added.
“The association is pleading with the government once again to as a matter of consideration reduce the corporate tax so that the banks can increase their CSR to communities.”
‘’The Manya Krobo Rural Bank is doing very well in terms of its CSR, and I believe if the tax rate had been reduced or come down the bank, as well as others, would have done better,” Mrs Owusu added.
Shareholders
The executive director also entreated shareholders of the bank to increase their shares for more dividends, saying “these are seeds that you sow not only for yourselves, but for generations yet unborn’’.
The outgone chairperson of the board, Mrs Tetteh, declared a dividend of GH¢969,185.00 paid to shareholders in 2022.
She also said the bank spent GH¢ 203,077 to carry out its corporate social responsibility.
Beneficiaries included the Manya Krobo Traditional Council, the Yilo Krobo SHS in Somanya, including offering scholarships to students of the Odumase Nursing and Midwifery Training School, among others.
Mrs Tetteh further said the bank would continue to do periodic review of its strategies at all levels in line with the changing business climate.
The shareholders unanimously approved an increment in the renumeration of the board of directors.