We never implemented betting tax, VAT on motor insurance – Minority

Addressing the media in Parliament shortly after the presentation of the 2025 Budget Statement and Economic Policy, the Karaga MP and former finance Minister, Dr. Amin Adam accused government of deceiving Ghanaians by committing to abolish the VAT on motor insurance and the betting tax.

He claimed that the previous NPP administration never implemented the betting tax and VAT on motor insurance, hence Ghanaians should not rejoice over the announcement to remove these taxes as they never existed.

“Ladies and Gentlemen, betting tax that they said they had abolished, we never collected betting tax. We never implemented the betting tax so to come and tell Ghanaians that you have abolished something that was never implemented is to deceive the people of Ghana,” he stated.

On the VAT on motor insurance, the Minority asserts that government is rather trying to outsmart Ghanaians by re-introducing VAT on non-life insurance with the exemption of the VAT on vehicle motor insurance.

 “The Minister announced that they are abolishing VAT on motor insurance. Ladies and Gentlemen, we were already not collecting VAT on motor insurance. VAT on motor insurance was exempted rather the minister was trying to be smart, they have re-introduced VAT on non-life insurance with the exemption of the vehicle motor insurance. So, all other insurance given that the penetration of the insurance industries is 1.1%, we are so shocked that the Minister will reintroduce VAT on non-life insurance except VAT on motor insurance,” he added.

Introduction of betting tax

Following the passage of the Income Tax Act, 2023 (Act 1094), a 10% withholding tax on winnings from betting was introduced.

The 10% withholding tax on winnings was implemented by the previous administration in July 2024 with the hope of curbing the rate of gambling and generating more revenue for the country.

However, the move was met with widespread dismay by Ghanaian bettors, who felt the government was being insensitive to their plight.

Many youth urged President Mahama prior to the 2024 elections to scrap the tax. The NDC promised to abolish the betting tax if elected, a key factor which mobilised the youth to vote for the party in the 2024 elections.

Source: 3news.com