A Communication Team Member of the National Democratic Congress (NDC), Margret Ansei has kicked against the introduction of a 10% withholding tax on betting and lottery profits.
According to her, betting serves as a business capital for the youth, and taxing it will impoverish them.
“I think there should be some consideration around it,” she said.
Making an appearance on Good Morning Ghana on Metro TV on Monday, August 21, 2023, Madam Ansei vehemently opposed the tax on betting which the government says it is aimed at discouraging the youth from indulging in it.
“There are no jobs. The rate of unemployment is so high. The Ghanaian youth has nothing doing so when they wake up aside [from] social media and other things, the other means of survival is through this betting.
“I don’t really know how much they do it what they put into it and so ever. But if someone gets a little from betting and can probably use it to start a business (I don’t know how much they get) but if you can get GHS2000, GHS3000 from you can go to farming with it or someone can start an online business or something with it and you are taxing and taxing the gross and taxing 10% we think it is so outrageous and the government must consider it,” she argued.
She noted that the taxation approach of the Akufo-Addo administration is in sharp contrast to the government he promised during his campaign trails.
“This is a people-centered democracy so policies and everything should be about the national security and the national interest. Where’s the national interest? The people. This is a country where 60% of its people are below 60 years per the Ghana Statistical Service [report] so, the youth are into it.”
“You are taxing the gaming institutions already. The young man who has let’s say GHS50 and has gone to bet and gotten let’s say GHS2,000; I mean taking 10%,” she said.
The 10% withholding tax on all gross gaming profits commenced on August 15, 2023.
The Ghana Revenue Authority said each share will no longer be subject to the former 15% Value Added Tax (VAT) rate. Instead, earnings that are accumulated following each wining will be subject to withholding tax.
The GRA went on to say that the updated procedure is in accordance with Act 1094, the second modification to the Income Tax Act of 2023 (No.2).
According to Edward Gyamerah, Commissioner of the Domestic Tax Revenue Division at the GRA, any gaming corporation that disregards the new rules would face sanctions.
“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.
