Key points:
- Ghana’s new budget proposes the removal of the nation’s 10% betting tax
- This proposal has sparked concerns from the IEA around revenue generation and harm minimisation
- The tax was initially introduced in August 2023
Ghana’s Institute of Economic Affairs (IEA) has raised concerns following the recently elected Government’s announcement that it will be scrapping betting tax as part of its new budget.
Currently, the nation yields a 10% tax – implemented in August 2023 – on all betting winnings, which is automatically deducted at the point where gambling winnings are awarded and not applied in the case of cancelled or failed bets.
Now, recently elected President John Mahama has announced that this initiative is set to be scrapped as part of his government’s budget – following a wider incentive to remove ‘nuisance taxes’ in Ghana.
The implementation of this abolishment in the 10% betting tax, alongside fiscal stability and emission taxes, will see President Mahama work closely with the International Monetary Fund (IMF). However, the endeavour will not be without opposition, as the IEA has voiced criticism of the decision, citing that the betting tax is key to both revenue generation and as a problem gambling deterrent tool.
Good to know: KPMG published a recent report which highlighted that the removal of the e-levy, Covid-levy and betting tax at the same time could lead to losses of GHS 6.4bn ($410m)
While a wider expression of support has been evident for related initiatives such as the scrapping of the e-levy and the Covid-levy, concerns around the removal of the betting tax are not limited to the IEA and have now begun to reverberate around the nation’s business academics.
Following this flurry of recent activity, the IEA has announced a counterproposal of a tax reduction to 5% from its current 10% – rather than a complete removal.
