In a bold move to strengthen Ghana's economy, Deputy Finance Minister Dr. Alex Ampaabeng has proposed implementing taxes on online trading companies, including popular social media platforms like Facebook and YouTube. This initiative aims to ensure that these digital giants, which generate substantial revenue from their Ghanaian user base, contribute their fair share to the nation's tax system.
In a recent interview with Bernard Avle on Channel One TV’s "The Point of View," Dr. Ampaabeng highlighted the significant revenue potential from online businesses and content creation companies. He questioned the current tax system's fairness, noting that while local businesses are taxed, major international digital platforms remain untaxed despite profiting from Ghanaian consumers.
Dr. Ampaabeng specifically mentioned online trading companies such as Jiji, Jumia, and Tonaton, noting their substantial market presence, which he believes exceeds that of all physical marketplaces in Ghana combined. "I can’t think of a country which has not gotten a digital service tax system of some sort, so Ghana is long overdue," he asserted.
He illustrated the profitability of these platforms by pointing out the frequent advertisements seen on YouTube and Facebook. "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," he explained. He stressed that revenues generated in Ghana should be subject to taxes, including those from digital platform owners like Facebook, TikTok, and others.
Moreover, Dr. Ampaabeng suggested that a collaborative effort with the government could help regulate and reduce cybercrime by requiring online trading companies to register and verify their operations. "We can have a system where the government engages these operators, so individuals will submit their Ghana Card and are registered and verified," he proposed.
As discussions continue, Dr. Ampaabeng expressed his vision for a future where all profit-generating activities within Ghana, particularly those from online and digital platforms, are appropriately taxed. This measure, he believes, will not only enhance the country’s revenue base but also ensure a level playing field for all businesses operating in Ghana.
.jpeg)
.jpeg)
