Ghana is joining the conversation. Deputy Finance Minister Dr. Alex Ampaabeng has called for the taxation of major digital platforms like Facebook, YouTube, and online trading companies.
This move is part of a broader strategy to increase government revenue and ensure that these global tech giants contribute their fair share to the local economy.
Speaking on Channel One TV, Dr. Ampaabeng highlighted the need to tap into various potential revenue sources for Ghana, particularly online businesses and content creation companies. He questioned why national companies operating in Ghana are taxed, while social media platforms such as YouTube and Facebook, which run numerous advertisements, are not included in the Ghanaian tax system.
“These social media companies earn profits from the advertisements they display, and online trading companies also generate income from the sale of their products and services,” Dr. Ampaabeng stated. He pointed out that online trading platforms like Jiji, Jumia, and Tonaton have grown to surpass all physical marketplaces in Ghana in size.
“I can’t think of a country that has not implemented a digital service tax system of some sort, so Ghana is long overdue,” he continued. “For instance, when you play a video on YouTube, within one or two minutes, you see multiple adverts. This clearly shows that platforms like Facebook and YouTube are making profits in Ghana, yet they are not being taxed, unlike other companies operating here.”
Dr. Ampaabeng emphasized the need for a fair application of tax laws, stating, “Revenues generated in Ghana should be subject to taxes. We have digital platform owners like Facebook and TikTok, as well as market players such as Jiji, Jumia, and Tonaton. These combined are bigger than all physical marketplaces in Ghana, indicating the volume of transactions happening online.”
Implementing taxes on digital platforms and online trading companies marks a significant shift in Ghana’s tax policy. It aims to modernize the tax system, ensuring a fair contribution from all sectors of the economy. Dr. Ampaabeng’s call reflects a growing recognition of the importance of the digital economy and the need for updated tax policies to address the realities of a digitalized world.
The Deputy Finance Minister’s advocacy underscores the urgency of adapting Ghana’s tax framework to include the digital sector, thereby capturing revenue from tech giants benefiting from the local market without necessarily having a substantial physical presence. This initiative is poised to enhance government revenue and promote economic equity.
As the conversation continues, Ghana looks towards implementing these changes to foster a more inclusive and fair economic environment, ensuring that both traditional and digital businesses contribute to the nation’s development.
