CUTS International calls for digital tax exemption on foreign online tuition in Ghana

CUTS International, a policy research think tank, is calling on the Ghanaian government to exempt tuition fees for recognized foreign distance learning programs from the current 20% digital tax. The organization argues that the existing tax structure creates inequality, as tuition from approved domestic institutions is VAT-exempt, while students pursuing comparable qualifications through foreign universities face a combined 20% charge consisting of 15% VAT, 2.5% NHIL, and 2.5% GETFund Levy.

Appiah Kusi Adomako, Director of the West Africa Regional Centre of CUTS International, stated that students pursuing comparable recognized qualifications deserve fair tax treatment regardless of whether the institution is local or abroad. The think tank warned that these additional costs could hinder access to skills and make education less affordable for those balancing studies with work and family responsibilities.

CUTS International has urged the Ministry of Finance, the Ghana Revenue Authority, and the Ministry of Education to review these rules and establish a transparent process for recognizing eligible foreign distance learning programs for equivalent tax treatment.