By Our Democracy News GH
October 17, 2026
Tano North Member of Parliament, Dr Gideon Boako, has warned that the 20% Value Added Tax (VAT) on qualifying foreign digital services could increase operating costs for small businesses and entrepreneurs who rely on online advertising and digital tools to reach customers.
Dr Boako has described the policy as “E-Levy Pro Max,” arguing that the tax could place an additional financial burden on business owners who pay for services such as Facebook and Instagram advertising, Canva Pro and CapCut Pro using mobile money and bank cards.
In a write-up on Friday, October 16, 2026, the lawmaker urged the government to address concerns about the policy’s impact on small businesses, particularly young entrepreneurs who depend on digital platforms to promote their products and generate income.
“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.
The MP questioned why digital advertising and productivity tools used for business should attract the same VAT rate as entertainment subscriptions, warning that additional costs could make it more difficult for small businesses to operate and expand.
He cited platforms such as Facebook, Instagram and TikTok, where entrepreneurs pay to promote their products, alongside subscription-based tools that support content creation, marketing and business productivity.
Dr Boako’s description of the measure as “E-Levy Pro Max” draws a comparison with the Electronic Transfer Levy (E-Levy), which was abolished. He argued that consumers could face higher expenses when paying for foreign digital services through mobile money platforms such as MTN MoMo, Telecel Cash and AT Money.
He also called on the Ghana Revenue Authority (GRA) to clarify how the tax system would distinguish ordinary money transfers from payments for taxable digital services.
Among his concerns were the safeguards against double taxation and the procedures consumers could follow to obtain refunds if VAT were wrongly charged.
Dr Boako maintained that the government should clearly communicate the policy’s potential financial implications for consumers and businesses rather than presenting it solely as an administrative measure for collecting tax.
His concerns focus on the additional costs that digital taxation could impose on entrepreneurs who depend on online advertising and subscription-based services to maintain their businesses and reach customers.
