The government’s recent announcement stated that as of August 1, 2023, all Facebook ads within the nation will be subjected to a 15% value-added tax (VAT), in addition to other existing levies.

According to the members of the association and these young business proprietors, this governmental action will only exacerbate the manifold challenges already confronting fledgling startups, potentially leading to a significant loss of employment opportunities for many.

During an interview with Citi News at the launch event of the Green Skills for Ghana Youth, an initiative in honor of International Youth Day 2023, held in Koforidua, Kobina Adomadzi Longdon, the President of the United Nations Youth Association Ghana, expressed his views, stating, “I firmly believe that accumulating taxes will not serve the interests of the burgeoning startups here. Establishing a successful business in Ghana necessitates much more than just a strong mindset; it involves a myriad of factors, and it’s not solely about financial resources. It’s a process that demands unwavering dedication, dexterity, and steadfast commitment right from the beginning. When you combine these taxes with the other challenges entrepreneurs face, the burden becomes excessively onerous for these young startups.”

“…For this reason, we implore stakeholders, including the government, to recognize this as an opportunity to make tangible, lasting contributions to startups and enterprises. It’s imperative that these efforts extend beyond mere discussions and transform into practical, actionable measures. By alleviating the tax burden, we can create an environment that supports the aspirations of young individuals who are eager to embark on entrepreneurial journeys due to the scarcity of opportunities in the traditional job market.”

Chuku Emeka, a young farmer, shared his perspective, stated, “Our primary struggle revolves around the exorbitant cost of feed. The expenses associated with feed are placing an immense strain on many businesses, forcing several to close. Additionally, the challenge of securing funding persists. We’re grappling with inadequate access to funding… Therefore, we earnestly call upon the government to extend its support to our sector.”

Both Solomon Adjei, President of the Association of Startups Ghana, and Dr. Bernice Korkor Gligah, a Senior Lecturer at Koforidua Technical University, expressed their concerns about this concerning development during conversations with Citi News.

Dr Gligah said “We want to implore all stakeholders if need be to look at the tax component if they need to be given some tax reliefs please let’s do that. We are all aware that there are tax reliefs for youth under.”

Mr Adjei also said “It is so worrying and for me, I really wish that government can take a second look at it. If there is a way we can scrap that social media tax completely, it will be good.”