Ghana has imposed a 10% tax on betting and lottery winnings effective from Tuesday.
The Ghana Revenue Authority (GRA) says the new withholding tax on all betting, games and lottery wins will be deducted at the point of pay-out.
According to the GRA, in situations where a game is cancelled and the player’s stake is returned or the value of the pay-out is less or equal to the amount staked, withholding tax will not apply.
Lottery operators have been directed to make changes to their software to display the amount staked, winnings and tax withheld during pay-out for easy tracking by the revenue authority.
GRA Commissioner Edward Gyambrah says the tax will “boost domestic tax revenue mobilisation as Ghana’s total tax to GDP is very low compared to that of others in the sub-region”.
The new tax has been widely criticised by young Ghanaians who say betting and lottery winnings serve as alternative income sources for the unemployed.
Revenue authorities have cautioned that sports betting firms, lottery operators, casinos, slot machines operators and marketing promoters who fail to comply will have their licences withdrawn.
Ghana secured a three-year IMF bailout programme in May this year after experiencing a protracted period of economic crisis.
Managers of the economy have been encouraged to expand the tax net and mobilise domestic resources to help navigate the country back to growth.
BBC
The Ethiopian Herald August 17/2023
