Stephen Amoah Calls 20% Digital Services Tax Too High as Ghanaians Face Higher Online Costs

According to a report by ChannelOne News published on October 14, 2026, Nhyiaeso Member of Parliament and Ranking Member on Parliament’s Finance Committee, Dr Stephen Amoah, has called for a review of Ghana’s 20% tax on qualifying cross-border digital services, warning that the rate could increase the financial burden on consumers.

Speaking on Citi FM’s Eyewitness News programme with Umaru Sanda Amadu, Dr Stephen Amoah acknowledged the government’s need to mobilise domestic revenue to finance development projects and reduce reliance on borrowing.

However, Dr Stephen Amoah argued that taxation must be carefully managed to avoid worsening the economic difficulties faced by ordinary Ghanaians. He maintained that although revenue mobilisation is important, the government must consider consumers’ ability to absorb additional costs.

Dr Stephen Amoah urged authorities to review the tax rate in the context of prevailing economic conditions and the timing of its implementation. He expressed concern that excessive taxation could undermine efforts to improve living conditions.

The debate centres on the collection of taxes on digital services provided by foreign companies to consumers in Ghana. These services include streaming platforms such as Netflix, Spotify and Disney+, as well as productivity tools such as Microsoft 365, Adobe and Zoom.

Other potentially affected services include cloud computing, online advertising, digital learning and certain online travel bookings.

The Ghana Revenue Authority (GRA) has explained that the effective 20% rate comprises 15% Value Added Tax (VAT), a 2.5% National Health Insurance Levy and a 2.5% Ghana Education Trust Fund Levy. According to the authority, the new collection system is intended to improve compliance with existing tax obligations rather than introduce a new tax.

The GRA has also stated that consumers who already pay the applicable taxes should not be charged twice on the same transaction. However, customers using services from providers that have not previously collected the required taxes may begin to see the charges reflected in their payments.

Dr Stephen Amoah’s comments have added to the discussion about balancing government revenue needs with the cost of digital services for consumers and businesses.

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