Betting tax abolished

In a move aimed at providing relief to bettors and gaming operators, the government has announced the abolition of the 10% withholding tax on lottery and betting winnings, commonly referred to as the ‘Betting Tax,’ in the 2025 budget.

The decision forms part of broader tax reforms designed to reduce the financial burden on Ghanaians and stimulate economic activity.

Finance Minister Dr. Cassiel Ato Forson made the announcement during his budget presentation in Parliament, highlighting the government’s commitment to easing economic hardship and promoting a fairer tax regime.

“Mr. Speaker, we recognise the concerns raised by the public and industry stakeholders regarding the betting tax. As part of our commitment to reducing the tax burden, we will abolish the 10% withholding tax on lottery and betting winnings,” Dr. Forson stated.

The betting tax, which was introduced by the previous administration, faced widespread criticism for its impact on bettors and the gaming industry. Many argued that the tax discouraged participation in the gaming sector, led to reduced winnings for players, and increased underground betting activities.

The abolition of the betting tax is expected to boost participation in the formal gaming sector, increase revenue for licensed betting operators, and encourage compliance within the industry.

Additionally, the removal of the tax is anticipated to reduce the shift towards unregulated betting platforms, ensuring that the industry remains within the formal economy.

However, concerns have been raised regarding how the government intends to offset the revenue loss resulting from the tax removal.

Dr. Forson assured the nation that alternative revenue measures, including enhanced tax compliance and a more efficient revenue collection system, would compensate for the shortfall.

“The removal of this tax will not only ease the financial burden on citizens but also support industry growth and improve compliance. We are confident that the overall economic benefits will outweigh any immediate revenue losses,” he added.

Source: techfocus24.com