While strongly supporting digital taxes on commercial goods, policy research group CUTS International, Accra, is raising an urgent national debate over the taxation of higher education.
The think tank is calling on the Ministry of Finance, the Ghana Revenue Authority (GRA), and the Ministry of Education to immediately review and exempt tuition fees paid by Ghanaian students pursuing recognized overseas distance learning programs from the 20% combined digital tax.
An Unfair Burden on Virtual Classrooms
CUTS expressed deep concern over the glaring inequality created by applying the digital tax to tertiary education. Under Ghana’s existing tax laws, qualifying education supplied by approved domestic universities and institutions enjoys full VAT exemption.
However, Ghanaian students pursuing comparable recognized degree and professional qualifications online through foreign universities are being hit with a full 20% tax penalty, comprising 15% VAT, 2.5% NHIL, and 2.5% GETFund Levy.
READ ALSO
CUTS argues that tax treatment must be guided by the educational value and accreditation of the institution, rather than whether the lecture is delivered inside a physical Ghanaian classroom or via a distance learning portal.
The University of London Example
To demonstrate the immediate impact on Ghanaian families, CUTS cited the University of London, which registered with the GRA and has been collecting a combined 20% Ghanaian tax on tuition payments from resident students since 2022.
Highlighting this discriminatory practice, Appiah Kusi Adomako, Esq., Director of the West Africa Regional Centre of CUTS International, argued that “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.”
Threat to Skill Development and Social Mobility
Distance learning has become an indispensable gateway for working professionals, mothers, and young adults in Ghana who seek advanced qualifications while remaining employed and caring for their families.
By inflating tuition costs through digital taxation, the government risks making higher education unaffordable for ambitious citizens who cannot afford overseas travel or residence. CUTS stressed that accredited degree and professional development courses are essential public goods that must be clearly distinguished from commercial entertainment and software subscriptions.
Call for Policy Reform
To resolve this injustice, CUTS urges the Ministry of Finance, the GRA, and the Ministry of Education to establish clear criteria for recognizing accredited foreign distance learning programs for tax exemption.
Where existing statutes limit relief, CUTS insists that the government should introduce legislative amendments to ensure full exemption across VAT and statutory levies.
Furthermore, the GRA must reconcile bank and supplier collection systems to guarantee that no student suffers duplicate or wrongful deductions.
