Tano North Member of Parliament, Dr Gideon Boako, has slammed the government’s implementation of Value Added Tax (VAT) on foreign digital services, describing the policy as a potential return of the financial burden associated with the abolished Electronic Transfer Levy (E-Levy).
Dr Boako argues that the application of 20% VAT to qualifying digital services could increase costs for Ghanaians who pay for online subscriptions, digital advertising and business tools using mobile money and bank cards.
In a write-up on Friday, October 16, 2026, the lawmaker cited platforms such as Facebook, Instagram and TikTok, where entrepreneurs pay to promote their products, as well as services including Canva Pro and CapCut Pro.
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He said these services are important business tools for young entrepreneurs and small businesses seeking customers and generating income in an increasingly digital economy.
“The lady boosting her business on Facebook with MoMo is not Netflix. She is not watching movies. She is trying to survive without a government job,” he wrote.
Dr Boako questioned why expenditure on digital advertising and productivity tools should attract the same VAT rate as entertainment subscriptions, arguing that the policy could place additional pressure on businesses already facing operating costs.
He described the measure as “E-levy Pro Max”, suggesting that consumers could experience higher costs when using mobile money platforms such as MTN MoMo, Telecel Cash and AT Money to pay for foreign digital services.
The MP also called for clarity from the Ghana Revenue Authority (GRA) on how the system would distinguish ordinary money transfers from payments for taxable digital services.
He questioned what safeguards would prevent double taxation and how consumers would obtain refunds if VAT were wrongly charged.
Dr Boako maintained that the government should openly acknowledge the potential financial implications of the policy for consumers and businesses rather than presenting it solely as an administrative measure for collecting an existing tax.