Flagbearer for the National Democratic Congress (NDC), John Mahama, has emphasized that taxes on betting will undergo thorough scrutiny if his party assumes power. This announcement comes in the wake of the passage of a bill in March 2023 that imposes a ten percent tax on winnings from sports betting and lotteries. The contentious nature of this policy has elicited criticism from numerous punters who find themselves subject to this additional financial burden.
During a recent engagement with the youth at Techiman Timber Market and the Techiman Magazine, Mr. Mahama faced inquiries about the possible revocation of this tax. While he was unable to explicitly convey his stance on abolishing the tax, he assured the public that a comprehensive review of various taxes would be conducted if his government came into power. His statement suggests that the assessment extends beyond just the taxes on betting, emphasizing a broader perspective on the overall tax structure.
As part of his current activities, the former president is embarked on a "Building Ghana Tour" in the Bono East region. This tour serves not only as a platform for engaging with local communities but also as an avenue for addressing concerns raised by citizens. Notably, these concerns are expected to be considered in the formulation of the NDC's manifesto for the upcoming 2024 election, reflecting a commitment to responsive governance and incorporating the voices of the people in shaping policy priorities.
Meanwhile, on a parallel track, the Ghana Revenue Authority (GRA) has implemented a significant tax measure affecting the gaming industry. Starting from August 15, 2023, a 10% withholding tax is being applied to all gross gaming winnings. This shift in policy is aligned with an amendment to the Income Tax Act 2023 (No.2), Act 1094. The GRA clarified that this withholding tax would be levied on profits earned after each win, and it comes with the adjustment that the existing 15% Value Added Tax (VAT) rate on each stake will no longer be applicable.
Edward Gyamerah, the Commissioner for the Domestic Tax Revenue Division at the GRA, elaborated on the rationale behind this new policy during a media engagement session. He emphasized that gaming companies failing to comply with the updated regulations could face severe consequences, including the withdrawal of their licenses. This stern approach underscores the GRA's commitment to enforcing tax policies and ensuring compliance within the gaming sector.
In summary, the political landscape is marked by John Mahama's commitment to reviewing taxes on betting, juxtaposed against the GRA's proactive implementation of a withholding tax on gaming winnings. These developments underscore the ongoing discourse on taxation policies in Ghana and the intersection of political promises with practical fiscal measures.
