Yesterday, The Chronicle carried a story about the government withholding 10% tax on lottery wins. According to the government, it is to widen the tax net and rake in more revenue for development. As a result, the Ghana Revenue Authority (GRA) would, from August 15, 2023, begin the implementation of a 10% withholding tax on all gross gaming winnings.
The Commissioner for the Domestic Tax Revenue Division at the GRA, Edward Gyamerah, stated during a media engagement in Accra 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, operators of marketing promotions, and operators of other games.
Meanwhile, a group calling itself Concerned Bettors of Ghana has rejected the 10% tax imposition on all betting, lottery, and gaming wins.
According to a statement issued by the group, an attempt to levy the youth who are into betting “is a recipe for chaos.” Richard Aguda, Convener of the group, described the tax as ‘clueless’, arguing that because of the lack of jobs, betting had become a source of livelihood for the youth.
The Chronicle would like to caution the Concerned Bettors of Ghana that the nation’s economy is still not out of the woods yet. Ghana is recovering from large external shocks after suffering from decreasing international reserves, cedi depreciation, rising inflation, and plummeting domestic investor confidence, which eventually triggered an acute crisis.
The government had to go to the International Monetary Fund (IMF) for an Extended Credit Facility arrangement, aimed at restoring macroeconomic stability and debt sustainability so as to lay the foundation for a stronger and more inclusive economic growth.
Key policies under the IMF’s wide-ranging reforms for Ghana include ambitious structural reforms in the areas of tax policy, revenue administration and public financial management.
The Chronicle, therefore, encourages all Ghanaians to support the government on its ambitious tax reforms to bring the economy back on a sustainable path.
We commend the government for taking this innovative approach because it will not only ensure a consistent source of funding for essential public programs but also encourages a culture of responsible gambling within the country’s burgeoning gaming industry.
Like many nations, Ghana faces the ongoing challenge of funding vital public services, infrastructure projects and socioeconomic initiatives. The introduction of a 10% tax withholding on lotto and gaming winnings offers the government a reliable and sustainable revenue stream.
The funds generated from this withholding can be directed towards areas such as healthcare, education, public transportation and poverty alleviation, thus significantly contributing to the nation’s development and progress.
Much as The Chronicle believes that revenue generated from the 10% tax withholding would be specifically channeled into programs designed to uplift the lives of Ghanaians, we also want to sound a note of caution to our politicians to exercise discipline in managing public finances by ensuring that government’s spending aligns with available resources and development priorities.
When government reduces its wasteful spending, the taxpayer will be willing to pay his or her tax without complaining.
We conclude by saying that the decision by the Government of Ghana to implement a 10% withholding tax on lotto and gaming winnings showcases a forward-thinking approach that combines revenue generation with responsible governance.
This strategic move not only benefits the government’s financial objectives but also reflects its commitment to the holistic development and well-being of its citizens.
