2025 Budget: Young entrepreneurs call for scrapping of e-commerce tax

The Ghana Chamber of Young Entrepreneurs has called for the removal of the e-commerce tax.

According to the Chief Executive of the chamber, Sherif Ghali, the tax impedes the growth of micro-small businesses that operate online and leverage social media platforms such as Meta and other e-commerce sites to promote their products and services.

His call came ahead of the 2025 budget presentation on Tuesday, March 11, 2025.

Ghali stated, “I’m looking forward to seeing the removal of some taxes, like the e-commerce tax. I’m looking forward to that because a huge number of my young entrepreneurs do their business online. Renting an office space in Accra, in fact, the whole of Ghana, is expensive.”

Adding that, “The cost of renting, furnishing, employing in-office staff and associated administrative costs is becoming expensive. Meanwhile, we are asking people to digitalize their business.”

“So I should be able to be in the house and still be able to do my business, but here’s the case: you are in your house, you go to Instagram to place an ad, and you are taxed for that. That is not fair.”

Read more: Ghana’s 2025 Economy Outlook

Likewise, a pre-budget survey conducted by the audit and accounting firm KPMG recommended a reassessment of taxes in the e-commerce and digital industries.

 The survey further suggests that if the government scraps the COVID-19 and E-levy taxes from the 2025 budget, the nation will lose almost GH¢6.4 billion in revenue.

However, the survey recommended that the government use technology to improve tax collection, particularly for property taxes.

Finance Minister Dr. Cassiel Ato Forson disclosed on his X account that the administration will implement policies to rationalize the nation’s current tax system, with a particular focus on the Value Added Tax.

Read: Producer Price Inflation hits 28.5% in January 2025

Also, Dr. Ato Forson mentioned that new initiatives are anticipated to enhance tax.