You’re Not Investing, But You’re Taxing” – Adutwum Slams Government’s 20% Levy on Digital Platforms

Dr. Yaw Osei Adutwum has criticized the government’s decision to impose a 20 percent tax on cross-border digital services, questioning the logic of taxing the sector heavily while allegedly failing to invest adequately in its growth. He made the remarks while speaking at the Church of Pentecost Political Chambers Conference at Gomoa Fetteh, where he raised concerns about the policy’s implications for ordinary Ghanaians and the country’s digital economy.

His comments come as commercial banks prepare to begin collecting the 20 percent tax on qualifying cross-border digital services starting October 15, 2026. The levy will affect popular platforms including Netflix, Spotify, and ChatGPT, among other foreign digital service providers. The move is expected to raise subscription costs for users of the affected platforms in cases where the applicable taxes are not already included in the displayed prices.

Dr. Adutwum argued that it is contradictory for the state to demand revenue from a sector it has not meaningfully supported through investment. In his view, a government serious about growing the digital economy should focus on building infrastructure, expanding access, and creating an enabling environment for technology and innovation, rather than placing additional financial burdens on consumers who rely on these services.

He warned that the tax could discourage the use of digital tools that are increasingly important for education, entertainment, and business, particularly for young people and small enterprises. He also suggested that such measures could slow Ghana’s progress toward digital transformation if citizens are priced out of essential online services.

The remarks add to the growing debate over taxation of the digital economy in Ghana, with critics arguing that consumers are being squeezed while proponents insist the levy will broaden the tax base and capture revenue from foreign platforms operating in the country.

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