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3 days ago

PARLIAMENT APPROVES REPEAL OF BETTING AND DIGITAL TAXES

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3 days ago

Parliament Approves Repeal of Betting and Digital Taxes

Ghana’s Parliament has officially repealed the contentious Betting Tax, along with levies on gaming, lotteries, and the 1.5% withholding tax on unprocessed gold. This decision, finalized on March 26, 2025, follows the passage of the Income Tax (Amendment) Bill, 2025. Under the new law, winners of betting games will no longer be subjected to the 10% tax on their earnings, a policy originally implemented during the tenure of former President Nana Akufo-Addo. However, this repeal presents a fiscal challenge for the current administration led by President John Mahama, as it is projected to create a revenue shortfall of GH₵268 million. Additionally, eliminating the tax on unprocessed gold is estimated to result in a GH₵145 million revenue loss. Finance Minister Dr. Cassiel Ato Forson noted that statistics from the Precious Minerals Marketing Company (PMMC) indicate that between $2.4 billion and $4.6 billion worth of gold was illegally exported to Dubai. He expressed optimism that the removal of the tax would curb smuggling and encourage legal trade, ultimately benefiting the economy.


The Betting Tax, introduced as a 10% charge on gross winnings, was initially designed to regulate gambling activities and enhance government revenue. However, it faced strong opposition from the betting community and gaming operators, who criticized it as excessive and detrimental to their industry. Throughout the 2024 election campaign, the National Democratic Congress (NDC) vowed to abolish the tax, branding it a “nuisance tax” that unfairly burdened bettors. Keeping true to its promise, the Mahama-led government included the repeal in its 2025 budget proposal, which has now received parliamentary approval. Meanwhile, the Minority in Parliament raised concerns that the government failed to enforce the emission tax law before opting for its repeal. In response, Dr. Forson assured that the administration had always intended to remove it. He emphasized that these tax repeals align with broader economic strategies to foster growth and ease financial pressures on citizens and businesses.

In addition to the Betting Tax repeal, Parliament has also passed the Electronic Transaction Levy (E-Levy) Repeal Bill, effectively eliminating the controversial digital tax. The E-Levy, introduced under the previous government, had been widely criticized for its negative impact on digital transactions and financial inclusion. Its removal marks a significant shift in the government’s approach to taxation, signaling a focus on alternative revenue sources. The repeal of these taxes has been met with mixed reactions; while many citizens and industry stakeholders welcome the relief, economists warn of potential budgetary constraints if new revenue streams are not identified. As the government works to mitigate these financial gaps, the success of these policies will largely depend on their ability to stimulate economic activity and counterbalance revenue losses. With these legislative changes now in effect, the administration aims to create a more favorable economic environment, though the long-term implications remain to be seen.




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