Sammy Awuku Speaks On Scrapping Of Betting Tax: “I’m Excited”

• Sammy Awuku, a former Director-General of the National Lottery Authority, has backed the scrapping of the betting tax
• Awuku, now the Akuapem North legislator, said the tax on betting and lottery winnings was counterproductive
• Awuku argued that the tax makes illegal betting operators more attractive to persons looking to gamble

Sammy Awuku, a Director-General of the National Lottery Authority under the Akufo-Addo administration, is excited that the Mahama administration is set to scrap the tax on betting and lottery winnings.

Awuku, now in Parliament representing Akuapem North, believes the tax is counterproductive.

Despite not being as vocal as his opposition politicians to the tax when the Akufo-Addo administration was in power, he told the Daily Guide he has always been against it.

“I’ve been consistent about it, even during the NPP era, and I said it is something that personally has not worked in many of the jurisdictions anytime you have introduced taxes on betting.”

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Awuku argued that the tax makes illegal betting operators more attractive to players. He also noted that it emboldened illegal operators.

“If you play with the government, you attract a 10% tax on what you win. But if you play with the illegals, you get your full money. So, I told them that, for me, it was counterproductive.”

The 10% withholding tax on betting and lotteries was introduced on August 15, 2023, to raise about GH¢400 million annually.

The Ghana Revenue Authority planned to implement the 10% withholding tax on the gross winnings from all lotteries from January 2024.

National Lottery Authority and Private Lotto Operators were granted a six-month extension to prepare and implement the tax.

But later, in 2024, Awuku noted that this was unsuccessful. The government was only taxing winnings from sports betting.

With the pledge to scrap the tax, President John Mahama previously said he would explore alternatives to the betting tax if he wins power.

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Mahama's main rival, the flagbearer of the New Patriotic Party, Dr Mahamudu Bawumia, also promised to scrap the betting tax if elected president.

Taxes to be scrapped in Mahama's first budget

YEN.com.gh reported that if approved, Finance Minister-designate Cassiel Ato Forson pledged to remove both the 1% Electronic Transfer Levy and the betting tax from the government’s first budget.

Forson also argued that both taxes hinder economic progress.

During his vetting, he noted that the Electronic Transfer Levy discouraged digital transactions and obstructed the country’s move towards a cashless economy, while the betting tax generated minimal revenue.

Source: YEN.com.gh