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.

Addressing a press conference on Tuesday, July 28, Dr Boako argued that although the government abolished the betting tax, it is now replacing it with another levy that will affect millions of internet users who pay for digital services or shop on international online platforms.

“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.

The lawmaker further warned that the tax could expose Ghanaians to double taxation on goods bought from overseas.

According to him, consumers already pay taxes in the countries where such products are purchased, and imposing an additional VAT in Ghana would amount to taxing the same transaction twice.

Dr Boako maintained that the policy would place an additional financial burden on consumers at a time when many households are already grappling with the rising cost of living.

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.