The Ghana Revenue Authority (GRA) is ramping up efforts to tax the country’s rapidly expanding digital economy, targeting online businesses, social media vendors, and app-based services in a bid to bolster domestic revenue.
Commissioner General Anthony Sarpong announced the initiative, framing it as essential to modernizing tax systems in line with shifting commercial trends.
“Commerce has migrated online today, you’re more likely to find a service provider on Instagram than in a physical store,” Sarpong said. “Our tax framework must adapt to ensure fairness and equity.” The GRA has begun mapping digital platforms, including WhatsApp, TikTok, and e-commerce sites, to identify taxable activities and integrate them into the national revenue stream.
The push aligns with calls by economists for Ghana to diversify revenue sources amid stagnant growth in traditional sectors. Experts argue that formalizing the informal digital economy, which includes thousands of freelancers, influencers, and small-scale vendors, could help bridge budget deficits exacerbated by recent global shocks. However, implementation challenges loom, including tracking transactions on decentralized platforms and ensuring compliance among digitally native entrepreneurs.
Sarpong emphasized the initiative’s broader significance, calling the digital economy “the revenue of the future.” The move follows a 2023 proposal by Ghana’s Finance Ministry to introduce a 1.5% tax on electronic transactions, though that measure faced public backlash over its impact on low-income users.
Ghana’s digital tax drive reflects a global trend as governments grapple with taxing borderless online activities. Nigeria and Kenya have introduced similar levies on digital services, while the OECD’s global tax reforms seek to standardize rules for multinational tech firms. For Ghana, where digital transactions surged by 76% in 2023, the challenge lies in designing a system that captures revenue without stifling innovation.
Analysts note that while the informal sector contributes nearly 35% of Ghana’s GDP, only 10% of its businesses are registered with tax authorities. The GRA’s focus on digital platforms could serve as a gateway to broader formalization efforts, though success hinges on public education campaigns and streamlined registration processes.
Critics, however, warn that aggressive enforcement risks alienating young entrepreneurs driving Ghana’s tech boom. “Taxation must be paired with incentives,” said Accra-based economist Nana Ama Agyemang. “Many digital startups are barely profitable pushing them into the tax net prematurely could collapse emerging ventures.”
As the GRA finalizes its digital tax framework, stakeholders await details on thresholds, exemptions, and enforcement mechanisms. With mobile money transactions alone topping $1 billion monthly, the stakes are high for a nation balancing fiscal recovery with aspirations to become West Africa’s digital hub.
