Osei Kyei-Mensah-Bonsu, the Majority Leader, has defended the introduction of a 10% withholding tax on betting and lottery profits.
The Suame MP vehemently supported the Ghana Revenue Authority’s (GRA) decision to impose a 10% withholding tax on bet and lottery profits during an interview on Kumasi’s Angel FM.
He asserted that the rise of betting businesses has made young people in the country feel lazy.
“I don’t believe in betting. I don’t believe in luck. I believe in hard work and sweat to get money. Let’s be serious. As for me, I’m against betting coming into the country. I don’t support it because it doesn’t encourage hard work.”
“As an individual, I don’t engage in the lottery because I don’t believe in that. I don’t believe in luck. Work hard so God will bless it.”
The 10% withholding tax on all gross gaming profits will go into effect on August 15, 2023, according to the Ghana Revenue Authority (GRA).
The 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.
Meanwhile, the Concerned Bettors of Ghana (CBOG) has cautioned the Ghana Revenue Authority (GRA) against the planned implementation of the 10% tax on all winnings from sports betting and lotteries on August 15, 2023.
In a public notice on Wednesday, August 9, CBOG described the decision to implement the tax as “clueless”.
“We, the above-mentioned association, rejects the announcement by the Ghana Revenue Authority (GRA) to the public for the implementation 10% tax on all betting, games, and lottery wins, from Tuesday, 15th August 2023.”
“CBOG wishes to say that an attempt to go ahead to levy the ordinary Ghanaian, especially the youth in betting, in an already tax-burdened society is a recipe for chaos,” parts of the statement read.
According to the Association, the 10% tax on all winnings from sports betting and lotteries are outrageous strategies to further impoverish the youth.
“Betting, games, and lottery have become an avenue for livelihood for millions of Ghanaian youth due to the unavailability of existing jobs and taking 10% of its winnings is a scandalous means to push the youth into a more abject poverty.”
