Good News As Finance Minister Designate Dr Cassiel Ato Forson Pledges to Abolish Betting Tax
- Dr. Cassiel Ato Forson has promised to scrap the controversial betting tax in his first budget if confirmed by Parliament
- The Finance Minister-designate insists that the betting tax has failed to generate the necessary revenue for the government
- He believes there is no need to increase taxes given the country’s substantial potential in revenue mobilisation
Finance Minister-designate Dr. Cassiel Ato Forson has pledged to abolish Ghana's contentious betting tax in his first budget if confirmed by Parliament.
This commitment aligns with the National Democratic Congress (NDC)'s campaign promise during the 2024 general elections.
Source: Getty Images
Finance Minister-designate vows to scrap the betting tax
Appearing before the Parliamentary Appointment Committee, Dr. Forson firmly declared his intention to remove the betting tax, citing its inefficiency.
“I insist that the betting tax must be abolished, and as Finance Minister, I will abolish it in my first budget because it has failed,” he stated.
He emphasised that the policy, introduced by the previous government, had neither achieved its revenue targets nor contributed significantly to economic growth.
Instead, it has placed an undue burden on an already struggling sector.
Enhancing tax revenue without burdening taxpayers
While proposing the elimination of the betting tax, Dr. Forson highlighted his broader fiscal strategy, which prioritises increasing tax compliance and expanding the tax base.
“You don’t necessarily have to increase taxes before you rake in revenue,” he noted, stressing efficiency over higher rates.
In the medium term, his goal is to boost tax revenue from 13.8% of GDP to between 16% and 18%, focusing on cutting wasteful expenditures to optimise resource allocation, per Citi News.
What is the betting tax?
The outgoing administration, led by Nana Addo Dankwa Akufo-Addo, introduced the betting tax to increase state revenue.
Under the Ghana Revenue Authority (GRA)’s guidelines, a withholding tax is automatically deducted at the payout point for all winnings from betting, lottery, and gaming activities, Africa News reports.
The tax does not apply if a game is cancelled, the stake is refunded, or the payout equals or falls below the initial stake.
Operators are required to update their systems to reflect the staked amount, winnings, and withheld tax for easier monitoring.
The debate over betting tax
Supporters of the tax argue that it discourages excessive wagering, especially among the youth, reducing potential addiction.
However, critics describe it as regressive, asserting that it disproportionately impacts bettors and fails to address the root issues.
A welcome development for punters?
For sports enthusiasts and betting aficionados, Dr. Forson’s promise comes as a breath of fresh air.
His approach not only aims to relieve a burdened industry but also signals a shift towards smarter, more sustainable fiscal policies in Ghana.
By focusing on efficient tax administration and broadening the revenue net, the Finance Minister-designate hopes to create a balanced system that fosters economic growth while lightening the load on taxpayers.
Punter reveals how much he lost to betting
In an earlier report, YEN.com.gh shared the story of renowned Ghanaian punter Enokay, who disclosed losing a staggering $200,000 in a single day of sports betting.
Speaking to 3Music TV, Enokay recounted placing multiple bets that culminated in the massive loss.
Remarkably, he bounced back within a month, recovering his losses and earning $470,000 in winnings.
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Source: YEN.com.gh
