VIDEO: John Mahama promises review of betting tax if elected President
The National Democratic Congress (NDC) flagbearer, John Mahama has pledged to review the taxes on sports betting imposed by the government if elected into office.
Former President Mahama made this announcement during an engagement with the youth at Techiman Timber Market and the Techiman Magazine as part of his "Building Ghana Tour" in the Bono East region.
The bill to tax sports betting and lottery winnings, which was passed in March 2023, imposes a 10 per cent tax on all winnings from sports betting and lotteries. This policy has faced criticism from punters since its implementation.
When questioned about the possibility of scrapping the tax during the engagement, Mahama did not provide a clear stance but assured the public that his government would review the tax. He emphasized that, if elected, his administration would assess various taxes imposed by the government, not just those on betting.
The Ghana Revenue Authority (GRA) began implementing a 10% withholding tax on all gross gaming winnings on August 15, 2023.
The tax is charged on profits earned after each win, replacing the existing 15% Value Added Tax (VAT) rate on each stake. The GRA explained that the new policy aligns with an amendment to the Income Tax Act 2023 (No.2), Act 1094.
The Commissioner for the Domestic Tax Revenue Division at the GRA, Edward Gyamerah clarified that gaming companies failing to comply with the new policy would face sanctions, including the withdrawal of their licenses.
Mr. Mahama's promise to review the betting taxes introduces a dynamic element to the ongoing debate over the taxation of sports betting and lottery winnings in Ghana.