The Minority in Parliament has opposed the government’s new Cross-Border E-Commerce VAT Monitoring and Collection System, arguing that it could result in double taxation and increase the cost of digital subscriptions and international online shopping for Ghanaians.
Parliament approved the agreement on Monday alongside two other agreements, despite the Minority voting against the measures.
Deputy Ranking Member on Parliament’s Finance Committee, Dr Gideon Boako, described the initiative as a “social media tax,” arguing that consumers could end up paying VAT in both the country of origin and Ghana. He warned that services such as Netflix subscriptions and purchases from international online retailers could become more expensive.
Ghana introduced VAT on foreign digital services in 2022, requiring providers such as streaming platforms to register with the Ghana Revenue Authority. The new system is intended to strengthen the monitoring and collection of VAT on cross-border e-commerce, with the government estimating that it currently loses about 60% of potential VAT revenue because of collection gaps.
Beyond the tax itself, the Minority also criticised the approval process, describing the multi-year agreement as lacking transparency. The caucus said Parliament approved the arrangement without full disclosure of the contract value, implementation timeline, or contractor.
Former Information Minister Kojo Oppong Nkrumah said the Minority would invoke the Right to Information Act to obtain the relevant documents and was prepared to pursue legal action if the information was not made available.
