Deputy Finance Minister Calls for Taxation of Online Trading and Social Media Companies
Dr. Alex Ampaabeng, Ghana’s Deputy Finance Minister, has advocated for the taxation of online trading platforms and social media companies operating within the country.
In an interview with Bernard Avle on Channel One TV’s “The Point of View,” Dr. Ampaabeng emphasized the importance of including these digital entities in the nation’s tax system to enhance economic growth.
He highlighted that both local and international online businesses generate substantial revenue from their Ghanaian user base. Companies such as Jiji, Jumia, and Tonaton, which conduct significant business transactions online, were specifically mentioned as examples of platforms that surpass traditional marketplaces in volume and scope.
Dr. Ampaabeng questioned the current tax disparity, pointing out that while national companies are subject to taxes, major social media platforms like YouTube and Facebook, which profit from advertisements viewed by Ghanaians, are not. He stated, “YouTube and Facebook earn profits from the advertisements they display to Ghanaian users and should, therefore, contribute to the tax system.”
Recommended Articles
Kwadwo Sheldon Advocates Against Taxing Content Creators
He argued that most countries already have some form of digital service tax and that Ghana is overdue for implementing such measures. “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 remarked. This inclusion, he believes, would ensure fairness and adherence to tax laws applicable to all revenue-generating entities within the country.
Dr. Ampaabeng also touched on the potential economic impact of taxing online traders who cater to Ghanaian residents. He noted, “We have Jiji, Jumia, Tonaton, these combined are bigger than all physical marketplaces in Ghana. It tells you the volume of transactions that are going on there.”
Beyond taxation, he proposed that the government should work on curbing cybercrime by implementing a system to register and verify online trading companies. This would involve requiring operators to submit identification, such as the Ghana Card, for verification.
In his vision for Ghana’s tax system, Dr. Ampaabeng expressed hope for a future where all forms of profit generated from Ghanaian consumers are taxed. He concluded, “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 should be required to pay taxes.”
Source Citinews
Useful Links
ADVERTIZE WITH US
JOIN NWN GH WHATSAPP CHANNEL FOR UPDATES
