CUTS International calls for review of 20% tax on foreign online tuition

CUTS International has called on the government to review the 20% tax imposed on tuition fees for recognized foreign distance learning programs. While the policy research and advocacy organization expressed support for the broader implementation of real-time tax collection on cross-border digital services, it warned that the specific levy on educational services could significantly hinder access to international qualifications for Ghanaian students. The organization emphasized that the current tax framework needs to be refined to avoid placing an undue financial burden on those seeking to improve their skills through global platforms.

The organization argued that the tax regime should ensure equitable treatment for all students, regardless of whether they are enrolled in local institutions or pursuing comparable qualifications through foreign-based online programs. According to CUTS, the additional 20% charge creates a barrier to entry for many learners, potentially making advanced education unaffordable. They maintained that maintaining access to foreign distance learning is essential for national development and that the tax policy should not inadvertently penalize students for the geographical location of their chosen institution.

In addition to the call for a rate review, CUTS International urged the government and the Ghana Revenue Authority (GRA) to provide greater clarity on existing tax exemptions for foreign educational programs. While the organization commended the GRA for its proactive efforts in addressing wrongful deductions, it highlighted the need for better coordination with commercial banks to prevent instances of double taxation. By ensuring that financial institutions can accurately identify and process exempt transactions, CUTS believes the government can better protect the interests of Ghanaian professionals and students navigating the digital economy.