The Deputy Finance Minister, Dr. Alex Ampaabeng is championing the taxation of online trading companies as a technique to improve Ghana’s revenue generation.
Bringing out the substantial revenue generated by both local and international online companies from Ghanaian clients, Dr. Ampaabeng emphasized the importance of integrating them into the tax framework.
Speaking in an interview with Channel One TV on Wednesday, June 12, Dr. Ampaabeng identified online businesses and content creators as promising revenue streams for Ghana.
He questioned the disparity in which local companies are taxed while global social media giants like YouTube and Facebook, which earn revenue through advertisements, operate tax-free in Ghana.
Dr. Ampaabeng emphasized that these social media platforms derive proceeds from the ads they host, while online trading entities such as Jiji, Jumia, and Tonaton also generate income from their products and services.
He noted the significant market presence of these online trading platforms, surpassing many physical marketplaces across Ghana in scale and economic impact.
“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.
He expressed positiveness about taxing individuals who earn online income from persons resident in Ghana.
