Deputy Finance Minister, Dr Alex Ampaabeng has advocated for the taxation of online trading companies to boost Ghana’s economy.
He emphasized that both local and international companies operating online generate substantial revenue from Ghanaian consumers, highlighting the need for a more inclusive tax system.
During an interview on Channel One TV, Dr. Ampaabeng identified various untapped revenue sources for Ghana, including online businesses and content creation companies.
He raised concerns about the current tax landscape, questioning why traditional national companies are taxed while major social media platforms like YouTube and Facebook, which host numerous advertisements and profit from Ghanaian users, are not subject to local taxes.
Dr. Ampaabeng argued that these platforms earn significant profits through the adverts they display and that online trading companies also generate substantial income from their sales and services.
He cited examples such as Jiji, Jumia, and Tonaton, which he claimed have a greater market presence than 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. 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, 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 stated.
He stressed the importance of taxing not only these digital giants but also individuals and companies conducting online transactions in Ghana, noting the significant volume of such activities.
He expressed his hope for a future where all forms of profits earned from Ghanaian residents, especially through online means, are taxed.
The Deputy Finance Minister also mentioned ongoing discussions about this issue and emphasized the need for a comprehensive tax framework that includes online trading activities.
In addition, he proposed a collaborative approach with the government to combat cybercrime by registering and verifying online trading companies.
He suggested implementing a system where operators would submit their Ghana Card for registration and verification to ensure compliance and enhance security.
“There are conversations ongoing, I wouldn’t want to pre-empt anything, maybe in the future, it might not be anytime soon, what I would like to see, is a Ghana where people who are earning all forms of profits in the country are subject to taxes. People who are trading online to Ghanaian residents, people who are generating revenue from Ghana are allowed to pay taxes,” he noted.
“We can have a system where the government engages these operators, so individuals will submit their Ghana Card and are registered and verified.”
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