20% digital tax: Government hiding behind technicalities to cheat Ghanaians – Dr Boako

Ghanaian Member of Parliament Dr Gideon Boako has criticized the government and the Ghana Revenue Authority (GRA) for allegedly evading the true impact of a proposed 20% digital tax on foreign digital services. In a recent online article, Dr Boako argues that the tax is being justified on technicalities, despite the fact that it will result in an additional financial burden for consumers who previously paid for these services without any extra charges.

Dr Boako points to digital subscriptions, online advertising, business software, and educational platforms as examples of services that could be affected. He emphasizes that any tax policy that imposes a new obligation or cost on consumers - even if technically not a new tax - should be clearly explained by the government. The 20% tax rate could disproportionately impact young entrepreneurs and small businesses that rely on paid online marketing and digital tools to expand their operations.

Dr Boako also questions the GRA's safeguards against double taxation, especially when it comes to foreign platforms and payment systems. He urges both the government and the GRA to be transparent about the policy's potential economic effects, rather than relying solely on legal justifications to mask increased costs for consumers.