In an effort to widen the Ghana tax net and rake in more revenue for development, the Ghana Revenue Authority (GRA) would from August 15, 2023 begin the implementation of a 10% withholding tax on all gross gaming winnings.
This means that the GRA has abandoned the previous 15% Value Added Tax (VAT) rate on each stake for a tax regime on betting, gaming, lotto and other games of chance that target only wins.
Edward Gyamerah, Commissioner for Domestic Tax Revenue Division at the GRA stated during a media engagement in Accra on Monday, this week, that the new policy falls in line with an amendment (No.2) to the Income Tax Act 2023 (Act 1094).
He said the new policy would be applied to private lotto operators, sports betting operators, casino operators, route operators, remote interactive games operators, remote interactive games operators, operators of marketing promotions and operators of other games of games.
Mr Gyamerah told the media in Accra on Monday, August 7, 2023 that the Authority by the policy expects lottery winners to start appropriate taxpaying of 10% by August 15 and “to this, we expect each and everyone to comply,” and failure to comply would have defaulting operator’s license withdrawn.
“From August 15, we expect that when you are making the payments, you will withhold 10 percent to the Ghana Revenue Authority (GRA). As you have been appointed as withholding agents, the obligation is on you to withhold”, he said.
The GRA also talked about the amendment to the Excise Duty Act, which would enforce excise stamps to be affixed on textile and fruit juice packages.
He explained that the excise stamps for textiles has a long term goal of saving the country’s dying garment industry, due to influx of pirated designs of local textiles on the market.
Mr Gyamerah added that imported and locally textiles as well as those in transition would have their unique features to differentiate between them.
On the fruit juice, he said most industries are diverting into the production of juice to avoid taxes, meanwhile, some the juices content is meanly sugar and water.
This, he said has led to the increase of sugar consumption, hence taxes might put some checks in place to slow down how businesses are finding production of fruit juice a safe haven and prevent sugar diseases among the public.
He explained that taxes are not necessary to generate revenues but also prevent certain social behaviours.
