CUTS backs Ghana’s digital tax collection, urges relief for online students
CUTS International has backed Ghana’s collection of existing taxes on cross-border digital services while urging fairer treatment of foreign distance-learning tuition. The think tank wants clearer exemption rules and safeguards against duplicate or wrongful deductions.
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Support for tax collection
CUTS International, Accra, has welcomed real-time tax collection on taxable cross-border digital services, saying it would protect Ghana’s revenue base and promote fair competition between local and foreign suppliers. It also urged the government to review the treatment of tuition for recognised foreign distance-learning programmes.
The combined charge commonly described as “20% VAT” comprises 15% VAT, the 2.5% National Health Insurance Levy and the 2.5% Ghana Education Trust Fund Levy. CUTS said collection through participating payment providers enforces existing obligations rather than introducing a new tax, and that using an online payment channel should not make an exempt supply taxable.
Fair treatment for students
CUTS questioned charging students in Ghana the combined rate on recognised overseas distance-learning programmes when comparable education supplied by approved local institutions may qualify for VAT exemption.
“Two students living in Ghana and pursuing comparable recognised qualifications deserve fair tax treatment,” said Appiah Kusi Adomako, director of CUTS International’s West Africa Regional Centre.
The organisation urged the Ministry of Finance, the GRA and the Ministry of Education to clarify exemption rules and establish transparent criteria for qualifying foreign programmes. It also called for legislative amendments where existing laws prevent full relief from VAT and the statutory levies.
Safeguards against incorrect charges
CUTS welcomed the GRA’s arrangements for resolving wrongful deductions through participating banks and payment providers. It urged banks to make complaints accessible and refund erroneous charges promptly, while calling for coordination with suppliers to prevent customers paying Ghanaian VAT twice on the same supply.
The think tank also urged banks and suppliers to disclose service prices, statutory taxes and bank charges separately, and called on the government to spend revenue prudently and account publicly for its use.
