Gideon Boako labels cross-border VAT a ‘social media tax’, warns of double taxation on online purchases

Deputy Ranking Member on Parliament’s Finance Committee, Dr Gideon Boako, has criticised the government’s decision to introduce a Cross-Border E-Commerce Value Added Tax (VAT) system, describing it as a “social media tax” that will increase the cost of digital services and online shopping for Ghanaians.

He urged the government to reconsider the implementation of the cross-border e-commerce VAT system to avoid discouraging digital commerce and increasing the cost of accessing online services.“Government abolished the betting tax but is now introducing a social media tax,” he stated, claiming the new VAT regime would make subscriptions to streaming platforms such as Netflix more expensive while also increasing the cost of purchases made through international e-commerce websites.