Social media advertisers are incensed about the newly introduced 21% tax on advertisement on Facebook, Instagram and Threads.
It follows an announcement by Meta for customers to brace up for the tax as part of government’s directive for e-commerce and digital platforms without physical presence in the country to file tax returns and pay monthly taxes similar to local businesses.
Renowned blogger, Ebenezer Donkor popularly known as NYDJ inn an interview with Starr News said the move is bad for business.
“It means that now you will have to spend more to reach the same people. Over the period of time now you realize that social media engagements are down, algorithms and all that have changed and for you to be able to reach a number of people you definitely have to advertise.
He added: “Now, what this means is that as individuals who patronize social media advertisement and corporate institutions who run advertisement on social media will have to spend more money in getting to the same audience. Let’s not forget that these are monies that we spend dollars on actually running these things. Looking at the Cedi’s strength against the Dollar as and when it goes up you spend more money. Now if you are supposed to get a revenue of 10 out of whatever you’ve spend, you will have to spend more to get that 10, losing money.”
Source: Kasapafmonline.com
