Government Proposes Taxing Facebook, YouTube, Tonaton & Other Sites To Generate Revenue

Government Proposes Taxing Facebook, YouTube, Tonaton & Other Sites To Generate Revenue

  • The Deputy Finance Minister, Dr Alex Ampaabeng, says the government is considering taxing content creation and e-commerce sites
  • He said the current legal framework does not allow for the taxation of these online sites, creating a tax loophole
  • He has proposed the revision of Ghana's tax laws to cover these online sites to generate enough revenue to bolster the country's economy

Deputy Finance Minister Dr Alex Ampaabeng has proposed taxing content creation and e-commerce sites.

He said these online sites, whether local or international, generate copious revenue from their Ghanaian clients and are not taxed.

Government Proposes Taxing Facebook, YouTube, Tonaton To Generate Revenue
The Deputy Finance Minister says taxing these sites would increase Ghana's tax net.
Source: Getty Images

He stated that taxing these online giants is the right move at a time when the country is cash-strapped and exploring other tax avenues to increase its tax net.

He noted that it is also quite unfair that businesses that operate physically in Ghana are taxed, whereas their online counterparts are left scot-free.

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He has suggested revising Ghana’s tax laws to allow the taxation of Google, Facebook, YouTube and Tonaton, among others, to generate revenue and bolster the economy.

Dr Ampaabeng justifies his proposal

Dr Alex Ampaabeng argues his point, saying that these online sites run thousands of paid-for advertisements through which they earn significant revenues.

He believes that Jiji, Tonaton, Jumia, and others are larger marketplaces than any other physical market in Ghana and earn even more revenue from the sale of varied products.

He noted that while there is currently no legal framework to allow for the taxation of these sites, such a law would be proposed soon to close this loophole.

He said the government is considering the proposal and a definite resolution would be reached soon.

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Dr Ampaabeng has also suggested a future collaboration between the government and online sites to curb cybercrime.

He said this would be handled by registering and verifying individuals who want to open online shops on various e-commerce sites using the Ghana Card.

Glovo exits Ghana

YEN.com.gh reported that the food delivery platform Glovo ended its operations in Ghana on May 10, 2024.

The company cited profitability issues within the Ghanaian market as the reason for its early departure despite significant business expansion investments in the last two years.

This was contained in a memo shared with the company’s network of restaurant partners via email.

According to the company, it will shift its resource investments to other countries where it operates in order to optimise service delivery.

Proofread by Edwina N.K Quarcoo, journalist and copy editor at YEN.com.gh.

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Source: YEN.com.gh

Authors:
Cornerlis Affre avatar

Cornerlis Affre (CA and Politics Editor) Cornerlis Kweku Affre is at present a Current Affairs Editor at Yen.com. He covers politics, business, and other current affairs. He has worked in various roles in the media space for at least 5 years. You can reach out to him at cornerlis.affre@yen.com.gh