Nhyiaeso MP and Ranking Member of Parliament’s Finance Committee, Dr Stephen Amoah, has challenged the government’s 20% tax on qualifying cross-border digital services, describing the rate as excessive and warning that it could increase the financial burden on consumers.He acknowledged the need for Ghana to strengthen domestic revenue mobilisation and reduce its dependence on borrowing to finance development. However, he argued that fiscal consolidation must be pursued without imposing additional hardships on households already facing economic pressures.Dr Amoah said a balanced tax policy was necessary to protect consumers while helping the country meet its revenue targets and build resilience against future economic shocks. He urged the authorities to consider prevailing economic conditions and the timing of implementation when introducing new tax measures.Speaking on Citi FM on Wednesday, October 14, Dr Amoah reiterated his objection to the rate, saying: “My only position is that 20% is too much.” He cautioned that efforts to reduce borrowing and strengthen the country’s fiscal position should not burden citizens beyond what they could reasonably afford.The Ghana Revenue Authority (GRA) is introducing a system requiring commercial banks to collect applicable taxes on qualifying cross-border digital transactions. The effective 20% rate comprises 15% Value Added Tax (VAT), a 2.5% National Health Insurance Levy and a 2.5% Ghana Education Trust Fund Levy. The measure covers qualifying payments for services such as Netflix, Spotify, Disney+, Microsoft 365, Adobe, Zoom, ChatGPT and cloud computing platforms. The GRA maintains that the arrangement changes the collection mechanism rather than introducing a new tax or resulting in double taxation.