Faith Nyasuguta
Ghanaians can expect the removal of the controversial betting tax when the 2025 budget is presented, according to the Minister of Youth Development and Empowerment, George Opare Addo. The minister reaffirmed the National Democratic Congress (NDC) government’s commitment to fulfilling its campaign promises, emphasizing that they will not disappoint the public.
Opare Addo assured young people that the government is taking active steps to eliminate what it calls “nuisance taxes,” including the betting tax, to ease the financial burden on bettors across the country. He noted that Finance Minister Dr. Cassiel Ato Forson is spearheading efforts to remove the tax as part of a broader strategy to reform Ghana’s tax policies.
Betting Tax Introduced in 2023
In August 2023, Ghana introduced a 10% withholding tax on betting and lottery winnings. The Ghana Revenue Authority (GRA) implemented the levy as part of efforts to increase domestic revenue. Under the regulation, the tax is deducted automatically at the point of payout for all gaming, lottery, and betting wins. However, if a game is canceled or a player’s stake is refunded, the tax does not apply. Similarly, if the payout amount is equal to or less than the initial stake, no tax is deducted.
This move sparked outrage among bettors, who argued that the tax unfairly targeted young people who rely on betting as a source of income. Critics also pointed out that the additional levy discouraged participation in the industry, potentially affecting revenue streams for sports betting companies and lottery operators.
Government’s Commitment to Scrapping the Tax
Speaking in an interview with JoyNews, Opare Addo highlighted that President Mahama’s administration is determined to deliver on its promise to scrap the betting tax. He assured that when the 2025 budget is presented in March, all promised tax cancellations will take effect.
“Everybody is committed to meeting the target of His Excellency President Mahama. When the budget is presented in March 2025, all the promises we made regarding tax cancellations will be implemented, and young people should look forward to the cancellation of the betting tax,” he stated.
Reports indicate that Finance Minister Dr. Cassiel Ato Forson is actively working with the International Monetary Fund (IMF) to remove nuisance taxes, including the betting tax. The finance ministry is also in discussions with stakeholders to ensure a smooth transition once the tax is abolished.
Tax Compliance and Economic Reforms
As part of previous enforcement efforts, lottery operators were required to upgrade their systems to provide detailed records of stakes, winnings, and tax deductions. GRA Commissioner Edward Gyambrah defended the betting tax as a necessary measure to boost domestic revenue, citing Ghana’s relatively low tax-to-GDP ratio compared to other countries in the region.
The GRA also warned that failure to comply with tax regulations could result in the revocation of licenses for sports betting firms, lottery operators, casinos, and other gaming establishments.
Ghana is currently undergoing economic recovery efforts under a three-year IMF bailout program, which was approved in May 2023. Policymakers have stressed the importance of broadening the tax base to stabilize the economy. However, the government now believes that removing certain taxes, including the betting tax, will help ease financial pressures on citizens while still maintaining fiscal responsibility.
With the 2025 budget set to be unveiled in March, all eyes will be on the government to see if it delivers on its promise to scrap the betting tax, a move that could bring significant relief to many Ghanaians.
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