NewzThe Member of Parliament for Tano North, Dr Gideon Boako, has accused the government and the Ghana Revenue Authority (GRA) of hiding behind legal technicalities to justify what he describes as an increased tax burden on Ghanaians using foreign digital services. In a write-up on Friday, October 16, Dr Boako criticised the GRA’s position that the VAT policy on cross-border digital services does not introduce a new tax but only provides a mechanism for collecting an existing one. He argued that the distinction does not change the financial impact on consumers who previously paid for the services without the additional VAT charge.
According to him, expanding the number of foreign companies required to charge and remit VAT means more consumers will now pay tax on services they previously accessed without the charge. He cited digital subscriptions, online advertising, business software and educational platforms as examples of services that could become more expensive. “Any amendment to a tax policy that imposes an obligation or burden on you that you did not have to suffer before is a new tax to you,” he wrote.
Dr Boako maintained that the economic effect on consumers should be central to the government’s explanation of the policy. He further argued that the 20% rate could disproportionately affect young entrepreneurs and small businesses that rely on paid online advertising and digital tools to grow their operations. He also questioned whether adequate safeguards existed to prevent double taxation, particularly where foreign platforms or payment systems might apply other taxes.
Dr Boako called on the government and the GRA to be transparent about the policy’s impact, insisting that legal justifications should not obscure the additional costs consumers could face. The Member of Parliament for Tano North, Dr Gideon Boako, has questioned the fairness and economic implications of the government’s digital VAT collection policy, arguing that it could increase costs for Ghanaians who depend on foreign online services. In a write-up on Friday, October 16, Dr Boako said the government’s insistence that the policy was not a new tax overlooked the fact that some consumers would now have to pay VAT on services for which they had not previously been charged the tax.
He explained that broadening the tax base to include more foreign digital service providers could affect subscriptions, online advertising, business software and educational platforms. He maintained that although the tax may already exist in legislation, its application to previously untaxed transactions creates an additional financial obligation for affected consumers. “Taxpayers are concerned about the economic incidence on their purse/pocket and not the legal regimes of taxes,” he wrote.
Dr Boako also questioned the application of the 20% effective rate to both educational and entertainment services. He argued that students accessing online courses from foreign providers could face a different tax burden from those using comparable services offered locally, while small businesses could incur higher costs when paying to promote their products on social media. He further expressed concern about possible double taxation, asking how the GRA would prevent consumers from being charged twice and what procedures would be available to those seeking refunds.
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