By John Ikani
Ghana has introduced a 10% tax on earnings from betting and lottery activities starting this Tuesday.
The Ghana Revenue Authority (GRA) has announced that this new withholding tax will be subtracted at the moment of payout for all betting, gaming, and lottery victories.
As outlined by the GRA, if a game is cancelled and the player’s wager is refunded or if the payout amount matches or is lower than the wagered sum, the withholding tax won’t be applicable.
For effective tracking by the revenue authority, lottery operators have received instructions to modify their software.
This will allow for a clear display of stake amounts, winnings, and deducted tax during the payout process.
Edward Gyambrah, Commissioner of the GRA, emphasized that this tax initiative will “enhance the collection of domestic tax revenue as Ghana’s overall tax to GDP ratio is relatively modest compared to its sub-regional counterparts.”
The newly implemented tax has faced significant opposition from young Ghanaians.
They argue that betting and lottery winnings offer an alternative income stream for the unemployed.
Revenue authorities have cautioned that failure to comply with the tax regulations will result in the withdrawal of licenses for sports betting firms, lottery operators, casinos, slot machine operators, and marketing promoters.
The tax on earnings from betting and lottery activities is coming at a time Ghana is embroiled in a prolonged period of economic turmoil.
The West African nation secured a three-year IMF bailout package in May of this year.
Economic managers have been urged to broaden the tax base and rally internal resources, aiming to guide the country towards a path of growth.
