Alex Kwesi Awuah, Managing Director of ARB Apex Bank, has made a compelling case for reducing the corporate tax rate for Rural and Community Banks (RCBs) from 30% to 18%. Speaking at the 23rd Annual General Meeting in Kumasi, Awuah emphasized that this tax incentive would fortify the financial foundation of RCBs, enabling them to invest more in corporate social responsibility projects and stimulate economic growth in rural areas.
This strategic move would have a ripple effect, enhancing the growth of RCBs while contributing to the broader economy’s development. Awuah’s vision aligns with ARB Apex Bank’s mission to support rural and community banks, having already shown resilience during the COVID-19 pandemic with a 10% growth in net interest income.
However, Awuah also expressed concerns regarding the retroactive enforcement of the Bank of Ghana’s Corporate Governance Directive. He urged regulators to uphold the originally stated 12-year CEO term limit starting from April 1, 2022, to safeguard constitutional rights and legitimate expectations of existing CEOs.
By advocating for a reduced corporate tax rate and clarity on regulatory policies, Awuah aims to create a conducive environment for RCBs to thrive, ultimately benefiting rural communities and Ghana’s economy as a whole.
Ruth Abla ADJORLOLO
