On Friday, October 16, 2026, Tano North MP Dr Gideon Boako criticised Ghana’s new 20% Value Added Tax on cross‑border digital transactions, saying it could unfairly penalise Ghanaians living and studying abroad.
In a Facebook post, the MP warned that Ghanaian students in the United Kingdom and the United States could be charged VAT when purchasing digital services with their parents’ Ghanaian bank cards, even though they consume the services outside Ghana.
He contrasted this with a hypothetical scenario in which a UK or US diplomat residing in Ghana purchases digital services using a bank card issued by their home country, a transaction he said could escape the VAT.
Boako said, “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 argued that the arrangement risks 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,” the MP wrote.
The MP’s comments come as the Ministry of Finance rolls out the new digital services tax, which applies to cross‑border purchases made with Ghanaian bank cards.
Observers say the policy could create a double‑taxation problem for students and expatriates, while foreign residents may benefit from the exemption.
