The Ghana Revenue Authority (GRA) has issued a new tax policy requiring all sports betting and lottery companies in the country to pay a 10% tax on all winnings to the government.
This new policy is effective August 15, 2023, and is aimed at expanding the tax base and increasing domestic revenue.
According to the GRA, necessary measures have been put in place to ensure full compliance with the newly amended Tax Act.
The government is hoping to generate GHC 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 GRA is urging individuals involved in these gaming activities to be aware of the new tax policy and comply accordingly. Ghana’s betting industry has experienced significant growth over the past decade, attracting numerous companies to establish their presence in the country.
While some Ghanaians express concerns about its impact on the youth, others view it as a lawful activity as long as no regulations are violated.
However, some Ghanaian sports enthusiasts are anxious about the decision and how it might affect their earnings.
The implementation of this new tax policy is expected to generate more revenue for the government and help with the country’s economic growth.
It remains to be seen how it will be received by the betting and lottery industry players and whether they will comply with the new policy.
By Vincent Kubi