Tax On Betting And Lottery: Ghana Revenue Authority To Begin Charging 10% On Winnings From August 15

Tax On Betting And Lottery: Ghana Revenue Authority To Begin Charging 10% On Winnings From August 15

  • GRA has announced that a new tax regime that swaps 12% VAT on every stake of a bet or a lottery for a 10% withholding tax on winnings will start on August 15
  • The new tax system for bets and lottery is part of revisions under the amended Income Tax Act 2023 (No.2), Act 1094
  • Also, from August 15, fruit juices, grapes, and vegetable juices that are unfermented and do not contain added spirits or sugar will attract 20% of excise duty

From August 15, 2023, the government will begin taking 10% of every winning from sports and other bettings and lottery as part of a revision of the current tax regime.

The Ghana Revenue Authority (GRA) the state agency that will be mandated to charge the taxes has explained that the new 10% withholding tax will replace the existing 15% Value Added Tax (VAT) on each stake.

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The 10% tax will be charged on profits an individual makes after each win.

Sports betting and lottery winnings will attract 10% withholding tax from August 15, 2023.
Stock image that depicts sports betting (L) and a creative image of a man looking unhappy. Source: Getty Images.
Source: Getty Images

Sanctions will apply to gaming companies that fail to comply

According to a Citi News report, Edward Gyamerah of GRA's domestic tax revenue division has explained that it is important for gaming companies to comply with the new tax system to avoid sanctions.

"As you have been appointed as withholding agents, the obligation is on you to withhold. If you fail to do that...you can be assured that your licenses will be withdrawn,” he warned.

New excise duties on beverages

The new tax system for bets and lottery is not the only revision under the amended Income Tax Act 2023 (No.2), Act 1094.

From August 15, fruit juices, grapes, and vegetable juices that are unfermented and do not contain added spirits or sugar will attract a 20% tax in the form of excise duty.

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Meanwhile, the excise duty on other beverages has also been increased from 17.5% to 20%.

There is, however, good news for companies that use local raw materials because they will get a rebate on their excise duty payments under the new tax regime.

The new tax regime is GRA's way of improving revenue mobilisation.

Economist criticises Ofori-Atta for maintaining taxes that are killing businesses

YEN.com.gh reported in a previous story that an economist with the Africa-China Centre for Policy & Advisory has bemoaned the maintenance of some taxes burdening Ghanaians

The government did not make any downward reviews or remove any taxes during the mid-year budget review.

The economist, Paul Frimpong said the taxes are stifling economic growth because of their effect on businesses.

Ghana could get $300m from World Bank by September

Also, World Bank Country Director Pierre Laporte has disclosed that Ghana is very likely to receive $300 million by the end of 2023.

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The money would be part of a $1.1 billion World Bank facility available to the country to support its annual budget.

Laporte said Ghana must first present a robust reform programme that tackles four key challenges including an improved revenue mobilisation plan, before the money can be disbursed.

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Source: YEN.com.gh

Authors:
George Nyavor avatar

George Nyavor (Head of Politics and Current Affairs Desk) George Nyavor writes for YEN.com.gh. He has been Head of the Politics and Current Affairs Desk since 2022. George has over 9 years of experience in managing media and communications (Myjoyonline and GhanaWeb). George is a member of the Catholic Association of Media Practitioners Ghana (CAMP-G). He obtained a BA in Communications Studies from the Ghana Institute of Journalism in 2010. Reach out to him via george.nyavor@yen.com.gh.

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