Facebook, YouTube, Jiji and other online businesses must be taxed to stimulate economy- Deputy Finance Minister

Dr. Alex Ampaabeng, the deputy minister of finance, has suggested taxing internet traders in order to stimulate the economy.

He pointed out that these businesses—both domestic and foreign—make a substantial profit from their Ghanaian clientele, highlighting the importance of taxes.

Dr. Ampaabeng mentioned a number of possible revenue streams for Ghana in an interview with Bernard Avle on Channel One TV’s The Point of View monitored by Puretvonline.com, including internet ventures and content production firms.

He questioned why social media sites like Facebook and Youtube, which frequently carry adverts, are exempt from Ghanaian tax laws while other foreign businesses doing business there are subject to taxes.

He said that internet trading companies get money from the sales of their goods and services, and these social media companies make money from the ads they show.

He listed virtual marketplaces like Jiji, Jumia, and Tonaton, which he said are larger than any physical marketplace in Ghana.

“I can’t think of a country that 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 advertisements.

“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 ads on your right and 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 jurisdictional 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.”

“Then we have the digital or market players,” he emphasised, referring to the people who use digital platforms. The combined size of Jiji, Jumia, and Tonaton is greater than that of all of Ghana’s physical marketplaces. Additionally, it provides information on the amount of transactions that occur there.

He said he hoped there will be taxes applied to those who make money online from Ghanaians.

“Talks are in progress; I don’t want to go ahead and say anything; it might not happen anytime soon, but my ideal Ghana would be one in which everyone who makes money there is required to pay taxes. “Those who are earning income from Ghana and engaging in online commerce with Ghanaian nationals are eligible to pay taxes,” he stated.

He also suggested working with the government to register and authenticate these internet trade businesses in an effort to combat cybercrime.

“We can set up a system in which the government pays these operators to register and verify people based on the information they provide with their Ghana Card.”