Edward Apenteng Gyamerah
The Ghana Revenue Authority (GRA) has announced the implementation of the Withholding Tax on Gross Gaming Winnings starting August 15, 2023.
According to the authority, following the passage of the Income Tax (Amendment) (No. 2) Act, 2023 (Act 1094), it has applied a ten percent (10%) withholding tax to the gross winnings from all Betting, Gaming, Lotto and other Games of Chance.
It indicates that the Withholding Tax deduction applies to winnings paid or payable by private lotto operators, sports betting operators, casino operators, route operators, remote interactive games operators, operators of marketing promotions, and operators of other games of chance.
The government is hoping to generate GH¢ 1.2 billion from lottery activities through this policy.
The policy was originally introduced in March 2023 when Parliament passed three new bills – the Excise Duty Amendment Bill 2022, the Growth and Sustainability Levy Bill 2022, and the Income Tax Amendment Bill 2022.
The authority further indicated that some operators in the industry including Casinos, Route Operations, and Marketing Promotions started implementation of this policy on June 1, 2023. Sports Betting and Private Lotto Operations are also expected to commence implementation on the earlier mentioned date.
Speaking at a media engagement on the implementation of new tax policy initiatives in Accra, the Commissioner of the Domestic Tax Division (DTRD), GRA, Edward Apenteng Gyamerah also indicated that it has also implemented a number of taxes such as the Electronic VAT, Electronic Tax Clearance Certificate, Upfront Payment on imported goods, Excise tax stamp, resumption of the payment of Vehicle Income Tax among others aimed at boosting domestic revenue mobilization for the country’s development.
Mr. Gyamerah said the authority’s continuous commitment to implementing tax policy initiatives, adding, “as a government institution responsible for revenue mobilization. Tax policies implemented by the authority are meant to generate domestic revenue to boost the economy”.
Meanwhile following the announcement of the implementation of Withholding Tax On Gross Gaming Winnings, many policy analysts and stakeholders in the gaming industry have objected to the tax introduction.
By Prince Fiifi Yorke