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ACCRA. – Ghana has introduced a new measure that will see a 10 percent tax applied to betting and lottery winnings, effective as of Tuesday.
The Ghana Revenue Authority (GRA) has outlined that this withholding tax will be automatically deducted at the point of pay-out for all betting, games, and lottery wins.
In cases where a game is cancelled and the player’s initial stake is refunded, or if the pay-out amount is equal to or less than the staked amount, the withholding tax will not be applicable.
To facilitate easy monitoring by the revenue authority, lottery operators are required to update their software to display the details of the amount staked, the winnings, and the tax withheld during pay-out.
Edward Gyambrah, Commissioner of the GRA, emphasized that this tax implementation is expected to enhance domestic tax revenue mobilisation, citing Ghana’s comparatively low tax-to-GDP ratio within the sub-region.
However, the new tax initiative has faced criticism from the younger generation in Ghana, who argue that betting and lottery winnings often serve as alternative income sources for the unemployed.
In a stern warning, revenue authorities have indicated that non-compliance with the new regulations will lead to the withdrawal of licenses for sports betting firms, lottery operators, casinos, slot machine operators, and marketing promoters.
Ghana recently entered into a three-year IMF bailout program in May of this year, following a prolonged period of economic challenges. As part of the efforts to revive the economy, managers have urged the expansion of the tax base and the mobilization of domestic resources to drive the country back towards growth. – africanews
Online Reporter