The Deputy Finance Minister, Dr. Alex Ampaabeng, has proposed taxing online trading companies, both local and international, to strengthen the economy.
Highlighting the significant revenue generated by these companies from Ghanaian clients, Dr. Ampaabeng emphasized the necessity of including them in the tax system.
In an interview, Dr. Ampaabeng identified various potential revenue sources for Ghana, including online businesses and content creation companies.
He questioned why other national companies operating in Ghana are taxed, while social media platforms like YouTube and Facebook, which run numerous advertisements, are not included in the Ghanaian tax system.
Dr. Ampaabeng noted that social media companies earn substantial profits from advertisements displayed to Ghanaian users, and online trading companies generate significant income from their products and services. He cited companies such as Jiji, Jumia, and Tonaton, which he believes surpass all physical marketplaces in Ghana in size.
He argued that Ghana is overdue for a digital service tax system, noting that most countries have already implemented such systems.
Using examples from YouTube and Facebook, he illustrated how these platforms generate profits from advertisements within Ghana without being taxed, despite the presence of other taxed companies operating within the country.
Dr. Ampaabeng stressed the importance of applying tax laws consistently to all revenue generated in Ghana, including those from digital platform owners like Facebook, TikTok, and others.
He also highlighted the substantial volume of transactions conducted by digital market players such as Jiji, Jumia, and Tonaton, which outstrip traditional marketplaces in Ghana.
Expressing hope for future taxation of individuals earning online profits from Ghanaian residents, Dr. Ampaabeng noted ongoing conversations about this issue.
He suggested that individuals trading online and generating revenue from Ghana should be subject to taxes.
Additionally, Dr. Ampaabeng proposed collaborating with the government to curb cybercrime by registering and verifying online trading companies through a system that requires individuals to submit their Ghana Card for registration and verification.
This initiative, he believes, would ensure a fair and comprehensive tax system, contributing to the country’s economic growth and stability.
