20% VAT on digital services punishes Ghanaians abroad, favours foreigners – Boako

Tano North MP Dr Gideon Boako has criticized the recent introduction of a 20% Value Added Tax (VAT) on cross-border digital transactions, expressing concern that it could unfairly penalize Ghanaians residing and studying abroad. In a Facebook post on October 16, 2026, Dr Boako highlighted that Ghanaian students in countries like the United Kingdom and the United States may be obligated to pay VAT when purchasing digital services using their parents' Ghanaian bank cards, despite their consumption of these services outside Ghana's borders.

He pointed out that this policy could disproportionately affect Ghanaian students who utilize their parents' bank cards to buy digital services while being abroad. Moreover, Boako contrasted this situation with that of a UK or US diplomat residing in Ghana, who would purchase digital services using a bank card issued by their home country and thus potentially avoid the VAT.

Boako contended that this could result in a disparity where Ghanaians living abroad are burdened with additional taxation, while foreign residents in Ghana can evade the charge. He emphasized that the new tax policy "punishes even Ghanaians living abroad while letting foreigners living in Ghana to go free."