Countries worldwide are wrestling with the challenge of effectively taxing the digital economy. Many have implemented or are considering digital services taxes to ensure tech giants, who benefit from local markets without a significant physical presence, contribute fairly.
Dr. Alex Ampaabeng, Deputy Finance Minister, has called for the taxation of major digital platforms like Facebook, YouTube, and online trading companies. This initiative aims to boost government revenue and ensure these global tech giants pay their fair share.
During an interview on Channel One TV, Dr. Ampaabeng highlighted various potential revenue sources for Ghana, including online businesses and content creators. He questioned why national companies operating in Ghana are taxed, yet social media platforms like YouTube and Facebook, which run numerous advertisements, are not part of the Ghanaian tax system.
He pointed out that these platforms earn significant profits from ads displayed to Ghanaians and that online trading companies also generate substantial income. Companies like Jiji, Jumia, and Tonaton, he noted, are larger than any physical marketplaces in Ghana.
“Ghana is long overdue for a digital services tax. For example, go to YouTube and watch a video; within minutes, you’ll see several adverts. This means Facebook or YouTube is profiting right here in Ghana without being taxed,” said Dr. Ampaabeng. “Meanwhile, companies operating in Ghana are taxed for jurisdiction reasons.”
He added, “Our tax laws need to apply to all revenue generated in Ghana. Digital platforms like Facebook, TikTok, and others should be included. Additionally, online marketplaces like Jiji, Jumia, and Tonaton, which handle vast transaction volumes, should also be taxed.”
Taxing digital platforms and online trading companies signifies a crucial shift in Ghana’s tax policy. This move aims to modernize the tax system and ensure fair contributions from all sectors of the economy.
