Ghana introduces new 10% tax on betting and lottery winnings
Ghana has introduced a new tax on betting, games of chance, and lottery wins. The 10% tax on all winnings will apply to both domestic and overseas competitors.
In addition, betting companies operating in the country will face a 20% tax on their revenue.
Ghanaians have had diverse reactions to the introduction of this new tax. While some have hailed the decision as a means of generating cash for the government, others have criticised it as yet additional burden on an already financially taxed population.
The betting industry in Ghana has grown significantly in recent years, with many Ghanaians turning to it to make quick money.
This has raised concerns about the industry’s potential detrimental social consequences, such as addiction and problem gambling.
List of Some Taxes Introduced By The Akuffo Addo-Bawumia Government.
Let's take a look at some of the taxes this current government has introduced since taking over.
A) New taxes introduced by the Akufo-Addo/Bawumia/NPP government during their first term (2017-2020) which Ghanaians are paying till date:
1. 3% VAT FLAT RATE
2. 5% increase in VAT by making the GETFUND levy and NHIL straight taxes..
3. 5% National Fiscal Stabilization levy (extended beyond expiry date of 2017)
4. 2% Special import levy (extended beyond expiry date of 2017)
B) First term (2017-2020) taxes that were imposed on Ghanaians, collected and later withdrawn:
1. Luxury vehicle tax (GHS1000 to GHS2,500 depending on engine capacity of vehicle)
2. 50% increase in Communication Service Tax (CST)
C) New taxes introduced in the year 2021 by the wicked Akufo-Addo/Bawumia/NPP government:
1. 1% COVID-19 levy on 3% VAT flat rate, making it 4% now.
2. 1% COVID-19 levy on the 2.5% National Health insurance levy, making it 3.5% now.
NB: These two taxes are indirect taxes that are paid by consumers and therefore all Ghanaians.
3. 5% financial sector clean-up recovery levy.
4. 1% E-levy (formerly 1.5%) on MOMO and other digital transactions.
D) NEW TAXES IMPOSED ON FUEL PRICES in 2021:
1. 20 pesewas Energy Sector Recovery Levy on every liter of diesel and petrol
2. 10 pesewas Sanitation levy (“Borla”) tax on every liter of diesel and petrol
3. 18 pesewas energy sector recovery levy on every kilogram of LPG
E) New taxes introduced in 2023
1. 2.5% increase in VAT
2. the Excise Duty Amendment Bill, 2022
3. the Growth and Sustainability Levy Bill, 2022
4. the Income Tax Amendment Bill, 2022.
*NB: these taxes don’t included increases in existing levies and margins on fuel.