CUTS International has welcomed the introduction of real-time tax collection on taxable cross-border digital services but is calling on the government to review the 20% tax charged on tuition for recognised foreign distance learning programmes.
The research and public policy think tank said real-time tax collection would help protect Ghana’s revenue by ensuring that taxable digital services meet their existing tax obligations, regardless of how they are delivered.
It argued that the growing shift from physical products to online subscriptions and digital downloads should not allow taxable transactions to escape taxation.
However, CUTS raised concerns about applying the same tax framework to recognised foreign distance learning programmes, particularly when comparable education offered by approved institutions in Ghana qualifies for VAT exemption.
The organisation said students pursuing similar recognised qualifications should receive equal tax treatment, regardless of whether their institutions are based in Ghana or abroad.
“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,” Appiah Kusi Adomako, Director of CUTS International’s West Africa Regional Centre, said in a statement dated Thursday, October 15.
CUTS warned that the additional cost could make education less affordable, especially for students who depend on distance learning to balance their studies with work and family responsibilities.
It urged the Ministry of Finance, the Ghana Revenue Authority (GRA) and the Ministry of Education to clarify the rules governing tax exemptions and establish a transparent process for recognising eligible foreign distance learning programmes for equivalent tax treatment.
The organisation also commended the GRA’s arrangements for addressing wrongful tax deductions.
It called on banks and payment providers to ensure that affected customers receive prompt refunds and are not charged tax twice on the same transaction.
CUTS maintained that effective taxation of digital services is necessary to protect government revenue and promote fair competition.
However, it stressed that the policy must be implemented in a way that does not unfairly increase the cost of recognised educational programmes.
