CUTS International has backed the introduction of real-time tax collection on taxable cross-border digital services but called on the government to reconsider the 20% tax on tuition fees for recognised foreign distance learning programmes.

The research and public policy think tank said the measure would strengthen Ghana’s revenue mobilisation efforts by ensuring that taxable digital services comply with existing tax obligations, irrespective of how they are supplied.

It argued that as consumer spending increasingly shifts from physical products to online subscriptions and downloads, the mode of delivery should not provide a basis for avoiding applicable taxes.

However, CUTS raised concerns about extending the tax framework to recognised foreign distance learning programmes, especially when comparable educational programmes offered by approved institutions in Ghana qualify for VAT exemption.

The organisation maintained that students pursuing equivalent recognised qualifications should enjoy equal tax treatment, regardless of whether their institutions are located 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,” the Director of CUTS International’s West Africa Regional Centre, Appiah Kusi Adomako, said in a statement dated Thursday, October 15.

According to CUTS, the additional financial burden could undermine access to education, particularly for students who rely on distance learning to combine academic pursuits with employment and family commitments.

The organisation urged the Ministry of Finance, the Ghana Revenue Authority (GRA) and the Ministry of Education to provide clear guidance on the applicable exemptions. It also called for a transparent process to identify qualifying foreign distance learning programmes eligible for equivalent tax treatment.

Meanwhile, CUTS commended the GRA’s arrangements for resolving cases of wrongful tax deductions. It urged banks and payment service providers to process refunds promptly and implement safeguards against double taxation on individual transactions.

The think tank stressed that effective taxation of digital services remains important for safeguarding public revenue and ensuring fair competition. However, it said the government must balance these objectives with the need to prevent tax implementation from placing an unfair financial burden on students enrolled in recognised educational programmes.