On November 7, 2024, five Members of Parliament (MPs) from Ghana’s National Democratic Congress (NDC) introduced a private members bill aimed at repealing the existing betting tax. This legislative move is spearheaded by notable figures including Francis-Xavier Kojo Sosu from Madina, Cassiel Ato Baah Forson representing Ajumako Bisease, Isaac Adongo from Bolgatanga Central, Teddy Safori Addi of Ayensuano, and Alhassan Sayibu Suhyini from Tamale North. Their collective aim is to amend the Income Tax (Amendment) Act of 2023, specifically targeting the provisions concerning the withholding tax on lottery winnings. This initiative reflects the MPs’ commitment to addressing concerns about gambling and taxation in the country.
The proposal aims to repeal the withholding tax rate imposed on winnings from various betting and lottery activities. The introduction of such a bill signifies a growing recognition among some legislators of the need to revisit the current tax regime governing gambling activities in Ghana. By doing so, the MPs seek to alleviate the financial burden that the withholding tax places on winners, which they argue could stifle the industry and limit individual earnings derived from gambling activities. Their legislative efforts encapsulate both a critique of the tax’s economic implications and an appeal to enhance the attractiveness of gaming as an entertainment option in Ghana.
Supporters of the bill may argue that repealing the tax could lead to increased participation in betting and lottery activities, potentially generating additional revenue for the government through higher turnover in the gaming industry. By eliminating the burden of withholding tax on winnings, this initiative could encourage more individuals to engage in legal gambling, thereby supporting the growth of the sector and providing a safer alternative to illegal gambling practices. This perspective positions the bill not only as a tax repeal but also as a strategic move to bolster Ghana’s gambling economy.
Contrasting perspectives are inevitable, and some critics may express concerns regarding the potential implications of repealing the betting tax. Opponents might contend that eliminating the withholding tax could lead to a significant decrease in government revenue that is currently collected from the gambling industry. This revenue is often earmarked for public services, social programs, and other essential government operations. Given the financial constraints many governments, including Ghana’s, face today, the loss of this tax could be viewed as detrimental to national fiscal health and social welfare funding.
Additionally, the issue of responsible gambling cannot be overlooked. Advocates for maintaining the betting tax might argue that taxes on gambling winnings serve not only as a revenue source but also as a means of regulating and minimizing the social risks associated with gambling activities. Maintaining a withholding tax can be seen as part of a broader framework to promote responsible gambling practices, ensuring that individuals engage in these activities with a full understanding of the financial implications and potential risks involved. In this light, the proposed repeal may raise ethical considerations about the balance between economic gain and social responsibility.
As Parliament prepares to deliberate the bill, the discussions surrounding it are poised to touch upon various facets—including economic impacts, societal implications, and the role of government in regulating gambling. The outcome of this legislative initiative will not only determine the future of betting taxes in Ghana but will also reflect broader societal attitudes towards gambling, taxation, and government intervention in personal finance. As this bill moves forward, it is essential for stakeholders to weigh the potential benefits against the possible risks, ensuring that the direction taken aligns with the overall welfare of the populace and the country’s long-term economic goals.
