Tano North MP Boako questions fairness of 20% VAT on cross-border digital transactions

Tano North MP Dr Gideon Boako has raised concerns over the 20% Value Added Tax (VAT) imposed on cross-border digital transactions, arguing it could disproportionately affect Ghanaians residing and studying abroad. In a Facebook post on October 16, 2026, the MP highlighted that Ghanaian students in nations like the United Kingdom and the United States might be charged VAT when buying digital services abroad using their parents' Ghanaian bank cards.

"It will affect lots of Ghanaian students who use their parent's Ghana bank card to purchase digital services abroad," Boako remarked. He pointed out the disparity with a UK or US diplomat living in Ghana who purchases digital services in Ghana using a bank card from their home country. Such individuals would not incur the VAT, creating an unfair situation, according to the MP.

Boako contended that the new tax was designed to penalize Ghanaians living abroad while allowing some foreign residents to benefit. "We have just introduced a tax to punish even Ghanaians living abroad while letting foreigners living in Ghana to go free," he expressed.