20% VAT on digital services punishes Ghanaians abroad, favours foreigners – Boako

Tano North MP Dr Gideon Boako has criticised the 20% Value Added Tax (VAT) on cross-border digital transactions, arguing that the policy could unfairly penalise Ghanaians living and studying abroad while allowing some foreigners residing in Ghana to avoid the charge.

In a Facebook post on Friday, October 16, 2026, Dr Boako said Ghanaian students in countries such as the United Kingdom and the United States could be charged VAT when purchasing digital services with their parents’ Ghanaian bank cards, despite consuming the services outside Ghana.

“It will affect lots of Ghanaian students who use their parent’s Ghana bank card to purchase digital services abroad,” he wrote.

He contrasted this with a hypothetical situation involving a UK or US diplomat living in Ghana who purchases digital services using a bank card issued by their home country.

According to the MP, such a transaction could escape the VAT, creating what he considers an unfair difference in how the tax applies.

“A UK or USA diplomat who lives in Ghana and procures digital services in Ghana using his home country bank card will avoid the VAT,” he stated.

Dr Boako argued that the arrangement risked placing an additional burden on Ghanaians while giving some foreign residents an advantage.

“We have just introduced a tax to punish even Ghanaians living abroad while letting foreigners living in Ghana to go free,” he wrote.