“Fueling Digital Growth: A Plea to Rethink the 21% META Ad Tax”

 

Dear Nana Addo Danquah Akuffo Addo, President of Ghana, Honorable Cabinet Ministers, Members of Parliament, and all stakeholders, fellow Ghanaians, greetings.

 

I come to your homes and your screens on behalf of the vibrant and innovative digital entrepreneurs in Ghana, in writing to address a matter of great concern: the recent introduction of a 21% tax on ads on META platforms, which includes popular platforms like Facebook and Instagram.

 

 

Before we delve into our concerns, we acknowledge the government’s responsibility to generate revenue for the nation’s development. However, we respectfully register our displeasure over the implementation of this tax, as it could have far-reaching implications for digital entrepreneurship and, particularly, the aspiring youth in our country.

 

The scourge of unemployment continues to affect the lives of our citizens, especially the young generation, with limited prospects and dwindling hope. In this era of technological advancements and digital media prevalence, businesses, organizations, and entrepreneurs have come to rely heavily on the internet for their day-to-day operations and outreach.

 

The news of the 15% VAT tax on META in addition to a 6% tax amounting to a 21% tax on ad spends came as an unexpected blow to us. While we recognize the need for financial resources to govern the nation, we implore that such measures are not implemented without considering their impact on those who strive to build a better future for themselves and Ghana as a whole.

 

Our youth, constituting up to 70% of the digital entrepreneurship landscape, will bear the brunt of this tax burden. Unlike established entities or industry giants, these young entrepreneurs lack substantial financial backing or allocated budgets for ad spends. Their businesses operate primarily through digital platforms, relying on Information Technology (IT) and digital media tools to connect with potential customers and grow their ventures. This recent taxation on digital ads comes not long after the imposition of taxes on other sectors, such as sports betting.

Earlier this week, I came across the “Help Prince Fly Campaign,” a heartening initiative aimed at assisting Prince Hamdan Banang, a young filmmaker and content creator in the North. Prince’s passion lies in showcasing the beauty of the northern region through his compelling stories, thereby changing its narrative and boosting tourism.

 

 

The campaign’s primary objective is to support Prince in repurchasing a drone and other necessary accessories crucial for his content creation work. Despite not receiving funds through his YouTube channel, Prince has devoted the last two years to investing his personal finances into acquiring gadgets for content creation and utilizing digital and social media marketing to promote his work.

 

What’s truly inspiring about Prince’s journey is that he is not alone. There are thousands of ambitious youth like him across the country, taking the bold step to venture into the realm of digital entrepreneurship. These aspiring entrepreneurs invest their resources, time, and energy into digital businesses, fully aware of the uncertain future that lies ahead. They embark on these journeys with little to no support and without the assurance of safety nets, embodying the very essence of entrepreneurship.

 

 

Mr. President, the plight of these determined digital entrepreneurs highlights the need for support and encouragement from the government and relevant stakeholders. Acknowledging their potential and empowering them with resources, and favorable policies can unlock a wave of creativity, innovation, and economic growth across the nation.

 

We humbly beseech you Mr President and your esteemed economic management team to reconsider the current tax percentage. A reduction to 10% or less would still contribute to government revenue while easing the burden on digital entrepreneurs. Alternatively, the complete annulment of this tax on META ad spends for individuals would best serve the interests of nurturing a thriving digital entrepreneurial ecosystem in Ghana.

 

As digital entrepreneurs, we do not seek to label you or your reputable ministers as inconsiderate; rather, we believe that you are passionate about the growth and well-being of the youth and digital entrepreneurs. By reassessing this tax policy, you will demonstrate your commitment to supporting the aspirations of young innovators and fostering an environment where digital entrepreneurship can flourish.

 

We recognize the complexity of managing the country’s finances, but we also believe that by working collaboratively, we can find solutions that align the interests of the nation’s development with the empowerment of our youth in the digital age.

 

I would like to propose a pragmatic solution that could ease the financial burden on young individuals and digital entrepreneurs in our country as we address this issue. The tax can hold for the industry giants in the country while individuals and/or digital entrepreneurs are given a two or three-year tax-free policy. This policy would provide much-needed relief and support to these young and ambitious individuals who are striving to contribute to our nation’s economic growth through digital innovation.

 

Empowering these budding entrepreneurs with a tax-free period would foster an atmosphere of innovation, encourage risk-taking, and drive entrepreneurial zeal.

 

Thank you for your time and consideration. We eagerly await your response, and we are hopeful that you will hear the collective voice of Ghana’s digital entrepreneurs and consider our plea.

 

Sincerely,
Lead Advocate,
Twum Badu-Nti

 

Source :Twumblog