CUTS International has welcomed the implementation of real-time tax collection on taxable cross-border digital services but urged the government to review the 20% tax on tuition fees for recognised foreign distance learning programmes.
The research and public policy think tank said real-time tax collection would help protect Ghana’s revenue base by ensuring that taxable digital services meet existing tax obligations, regardless of how they are delivered.
According to CUTS, the shift from physical products to online subscriptions and downloads should not allow taxable purchases to escape taxation.
However, the organisation expressed concern about applying the same tax framework to recognised foreign distance learning programmes, particularly when comparable education provided by approved institutions in Ghana qualifies for VAT exemption.
It argued that students pursuing comparable recognised qualifications should receive equal tax treatment, regardless of where their institutions are based.
“Two students living in Ghana and pursuing comparable recognised qualifications deserve fair tax treatment. Charging one student because the university delivers the course from abroad, while exempting comparable tuition supplied locally, raises a serious question of equity.
“Education policy should support access to skills,” the Director of CUTS International’s West Africa Regional Centre, Appiah Kusi Adomako, said in a statement dated Thursday, October 15.
CUTS warned that the additional cost could restrict access to education for students who depend on distance learning to balance their studies with work and family responsibilities.
The organisation called on the Ministry of Finance, the Ghana Revenue Authority (GRA) and the Ministry of Education to clarify the applicable exemption rules and establish a transparent process for recognising qualifying foreign distance learning programmes for equivalent tax treatment.
It also commended the GRA’s arrangements for addressing wrongful deductions, urging banks and payment providers to ensure prompt refunds and prevent customers from being taxed twice on the same transaction.
CUTS maintained that although effective taxation of digital services is necessary to protect public revenue and promote fair competition, the government must ensure that implementation does not unfairly increase the cost of recognised educational programmes.
