A Deputy Finance Minister, Dr. Alex Ampaabeng, has proposed the taxation of online trading companies as a measure to increase Ghana’s revenue.
Emphasizing the significant income generated by both local and international online businesses from Ghanaian consumers, Dr. Ampaabeng highlighted the need to incorporate these entities into the nation’s tax system.
In an interview with Channel One TV on Wednesday, June 12, Dr. Ampaabeng pointed out that online businesses and content creators represent promising sources of revenue for the country.
He criticized the existing discrepancy where local businesses are taxed while global social media giants like YouTube and Facebook, which earn substantial revenue through advertisements, remain untaxed in Ghana.
Dr. Ampaabeng underscored that social media platforms profit from hosting ads, and online trading companies such as Jiji, Jumia, and Tonaton generate significant income through their products and services.
He remarked on the extensive market presence of these online trading platforms, noting that they often surpass many physical marketplaces in scale and economic impact within Ghana.
“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. 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 and 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,” he said.
“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,” he added.