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20% TAX ON CHATGPT, NETFLIX AND SPOTIFY COULD SABOTAGE THE GOVERNMENT — GRA MUST RECONSIDER THE DECISION – William Boadi, EAI
I wish to express my deep displeasure and concern over the reported decision to impose a 20% tax on subscriptions to digital services such as ChatGPT, Netflix and Spotify, effective October 15.
While I acknowledge the importance of taxation in national development, tax policies must be fair, reasonable and sensitive to the economic realities of ordinary citizens. Government must not create a situation where access to knowledge, technology and digital opportunities becomes increasingly expensive for the very people who need them most.
ChatGPT, in particular, has become an important learning and productivity tool for students, teachers, researchers, entrepreneurs and professionals. Many learners rely on it to understand difficult concepts, conduct research, improve their writing and acquire new skills. Imposing additional costs on these services risks widening the digital divide and placing essential learning tools beyond the reach of low-income students and young people.
The fact that these platforms were not developed by the Government of Ghana should also encourage a careful discussion about the nature of the services, the applicable tax framework and how the resulting burden will be distributed between providers and consumers. Digital innovation should be encouraged, not made unnecessarily inaccessible.
I therefore respectfully urge the Commissioner-General and the Board of the Ghana Revenue Authority (GRA) to reconsider this reported measure and engage relevant stakeholders before its implementation.
Taxation must be informed by citizens’ income levels, salaries, purchasing power and other sources of income. Although consumption taxes are not necessarily calculated according to individual salaries, policymakers must consider their cumulative impact on households already struggling with the rising cost of living.
Government must find a balance between revenue mobilisation and the welfare of the people. A policy that makes education, digital literacy and access to modern technology more expensive could undermine the very human-capital development Ghana needs to achieve sustainable economic growth.
We need a tax system that generates revenue without unnecessarily squeezing citizens, discouraging innovation or excluding young people from global learning opportunities.
The government must listen to the people. The GRA must reconsider. Ghana’s digital future must not become a privilege reserved for those who can afford it.
Signed
William Boadi
Executive Director of Educate Africa Institute (EAI)
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