A Deputy Finance Minister, Dr. Alex Ampaabeng, is proposing the taxation of digital platforms such as YouTube, Facebook, and others to bolster Ghana’s economy.
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Dr. Ampaabeng believes these digital commercial platforms, along with online trading companies, both local and international, should be taxed as they generate substantial revenue from their Ghanaian clients.
He questioned why other companies operating in Ghana are taxed, yet platforms like YouTube and Facebook, which run numerous advertisements, are currently excluded from the tax system.
He pointed out companies like Jiji, Jumia, and Tonaton, which he believes surpass all physical marketplaces in Ghana in terms of size and revenue.
“I can’t think of a country which has not gotten a digital service tax system of some sort, so Ghana is long overdue. Just to make an example so that people will appreciate where I’m coming from.”
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“Go to YouTube and play a video, within one or two minutes, you are going to watch about two or three adverts. What it tells you is that Facebook or YouTube is making profits right here in Ghana. Go to your Facebook account, and you are going to see a number of adverts on your right, left. What it is telling you is that Facebook is making profits right here in Ghana and not being taxed. Meanwhile, there are companies operating in Ghana for jurisdiction reasons, of course, that are being taxed.
“So then, it comes to the question of the application of our tax laws. Revenues generated in Ghana are subject to taxes. We have Facebook, TikTok, and all those players. These are digital platform owners,” Dr. Ampaabeng said in a report on citinewsroom.com.
He emphasized, “Then we have the digital or market players. Here, we are talking about individuals who are using digital platforms. We have Jiji, Jumia, and Tonaton, these combined are bigger than all physical marketplaces in Ghana. It tells you the volume of transactions that are going on there.”
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