Digital economy tax reform proposed after levy abolishment

Policy experts are calling for new ways to tax Ghana’s digital economy. They say this is needed after the government removed the E-Levy, COVID-19 Levy, and Betting Tax.

The Centre for Policy Scrutiny says ending these taxes has created wider gaps in how the government collects money. Dr. Adu Owusu Sarkodie, their Executive Director, stated Ghana’s rising debt shows it borrows too much. This means the country needs new and steady ways to get income.

Dr. Sarkodie explained that even though there were problems with the E-Levy, taxing digital services is still important. Mobile money, online betting, and e-commerce are growing fast. Ghana should not leave these areas untaxed.

Isaac Danso Agyiri, a tax expert, said Ghana is behind other African countries in collecting taxes from new sectors. He suggested that digital transactions, online games, and cross-border digital services are key areas for new taxes. He believes this would add to the tax base without hurting traditional businesses.

Elsie Apaw Ocloo from the Ghana Revenue Authority said removing the taxes has not stopped them from collecting money. She noted that tax collections went up by 20% in the first three months of the year compared to last year.

Experts agree that instead of scrapping digital taxes, Ghana should make them better. A good digital tax plan should bring in money, be fair, and support economic growth in a changing digital world.