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AWS to Introduce 21% Cloud Service Tax in Ghana

Starting March 1, 2025, Amazon Web Services (AWS) will apply a 21% tax on cloud services in Ghana, impacting startups and businesses relying on AWS for data storage and digital operations. The tax includes a 15% VAT and an additional 6% in levies, covering national health, education, and COVID-19 recovery funds.

This move could increase costs for Ghanaian startups, making cloud adoption more expensive compared to other regions with lower financial barriers. It may also push businesses to seek alternative cloud providers or on-premises solutions, potentially slowing growth and innovation.

Despite the tax, Ghana’s public cloud sector is projected to generate $306.10 million in revenue by 2025. However, startups now face added financial pressure in an already challenging economic landscape.

Read the full story here: TechCabal