If elected President, John Mahama promised to reform the betting tax.

Former President Mahama declared this announcement during an interaction with the youth at Techiman Timber Market and the Techiman Magazine as part of his "Building Ghana Tour" in the Bono East region. The legislation to impose taxes on sports betting and lottery winnings, which was approved in March 2023, enforces a 10% tax on all earnings from these activities.

This measure has been met with criticism from bettors since its implementation. When questioned about the possibility of abolishing the tax during the engagement, Mahama did not provide a definitive stance but reassured the public that his government would review the tax. He emphasized that, if elected, his administration would evaluate various taxes imposed by the government, not exclusively those related to betting.

On August 15, 2023, the Ghana Revenue Authority (GRA) commenced the implementation of a 10% withholding tax on all total gaming winnings. This tax applies to profits earned after each victory and supersedes the previous 15% Value Added Tax (VAT) rate on each wager. The GRA clarified that this new policy aligns with an amendment to the Income Tax Act 2023 (No.2), Act 1094.

 

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Thank you for providing the detailed information about Former President Mahama's announcement regarding the betting tax reform in Ghana.

It is not surprising that the imposition of a 10% tax on sports betting and lottery winnings has been met with criticism from bettors. Taxes on gambling winnings are often a contentious issue, as they directly affect individuals' profits from their gambling activities.

Former President Mahama's statement about reviewing the tax and evaluating various taxes imposed by the government demonstrates a commitment to considering the concerns raised by the public. It suggests that if elected, his administration would undertake a comprehensive assessment of the country's tax system, which could potentially lead to reforms in different areas, including betting taxes.

Regarding the implementation of the tax, it is noteworthy that the Ghana Revenue Authority (GRA) has initiated the implementation of a 10% withholding tax on all total gaming winnings. This change supersedes the previous 15% Value Added Tax (VAT) rate on each wager and aligns with the amendment to the Income Tax Act 2023 (No.2), Act 1094.

While the implementation of this new tax policy may have its reasons, such as generating additional revenue for the government, it is essential to consider the potential impact on bettors and the overall gambling industry. High taxation rates can discourage participation in gambling activities and potentially drive bettors towards unregulated or illegal gambling options.

Therefore, it is crucial for any government to strike a balance between tax revenue generation and ensuring a sustainable and thriving gambling ecosystem. Reviewing and potentially reforming the betting tax, as suggested by Former President Mahama, could be a step towards achieving this balance.

It remains to be seen how the tax reform discussion will unfold and what specific changes may be proposed in the future. However, it is worth monitoring the developments in this area, as they could have significant implications for bettors, the gambling industry, and the overall economy of Ghana.