Tax analyst, Francis Timore Boi Esq has advised the government against suspending the 20 per cent Value Added Tax (VAT) on cross-border digital service transactions which takes effect today, despite widespread public confusion and inadequate education by the Ghana Revenue Authority (GRA).
Speaking on Starr FM’s Morning Show, Morning Star on Wednesday, 15 October 2026, Timore Boi Esq. acknowledged significant gaps in public awareness but argued that revenue considerations outweigh the case for a pause.
The Lawyer was more critical of the limited public education that preceded the policy arguing that the GRA had done the public a “great disservice” by failing to mount an extensive awareness campaign.
Many Ghanaians, he noted, remain unaware that they already pay VAT on services such as Netflix.
“Why do you do such a big policy within two days and bring it to the limelight for people to see? Why didn’t we start it like a year ago when the project started? So that people clarify everything and people can also…volunteer compliance,” he said.
Drawing on his legal background, he observed that assumptions about public knowledge of laws extend beyond taxation and often leave citizens uninformed until they face consequences.
He noted that VAT remains one of the government’s strongest tax revenue lines and that suspending the measure so close to the end of the year could jeopardise targets and increase reliance on external borrowing.
“If I look at the revenue that the government has raised from VAT…that the poorest tax line is VAT. So, number one, I wouldn’t have suspended it.
“Number two, we are just close to the year end, and we are already in October. So I believe that they are scared of not meeting the revenue target,” Timore Boi stated.
He contrasted proceeding with the tax against the alternative of seeking further support from the International Monetary Fund (IMF), which he doubted would readily provide additional loans.
“My brother, I would recommend that we proceed and then embark on a massive [education]…or put in systems in place. Let’s educate the people as soon as possible….
“Trust me, I don’t want my country to continuously borrow. Look at where our debt level went and the impact on us,” he said.
On the impact on consumers, Timore Boi explained that service providers are not obliged to absorb the tax as some may share the burden by adjusting base prices, the ordinary expectation is that the full cost will be passed on.
“Ordinarily, we expect that they will pass on the tax to you (consumers). And so be prepared to pay a little bit if your service provider is already not registered and charging you,” he said.
He further clarified that consumers already paying VAT on registered services, such as certain streaming platforms, should not see new charges. Unregistered providers, however, are likely to introduce or increase the levy.
Timore Boi further called for rapid, intensive education running alongside implementation rather than a hold on the policy.
He called for clear communication on what is taxable, identification of entities operating outside the system, and stronger efforts to raise compliance.
Source: Starrfm.com.gh
