The Majority Leader, Osei Kyei-Mensah-Bonsu, has provided a rationale for the recently introduced 10 percent withholding tax on betting and lottery winnings.
During an interview with the media, the Suame MP passionately defended the decision made by the Ghana Revenue Authority (GRA) to impose a 10 percent withholding tax on earnings from bets and lottery games.
He asserted that the proliferation of betting companies has contributed to a culture of idleness among the youth of the country.
“I am not a proponent of betting. I don’t believe in luck. I believe in diligent work and effort to earn money. Let’s be earnest. Personally, I am against the introduction of betting in the country. I do not endorse it as it does not promote hard work.”
“As an individual, I refrain from participating in the lottery because I do not subscribe to the notion of luck. Work diligently so that God may bestow blessings upon your endeavors.”
The Ghana Revenue Authority (GRA) revealed on Monday, August 7, that it would commence the implementation of a 10% withholding tax on all gross gaming winnings starting from August 15, 2023.
The GRA clarified that this withholding tax will be applied to profits gained following each victory, and the existing 15% Value Added Tax (VAT) rate on each stake will no longer be applicable.
The GRA stated that this new policy aligns with an amendment to the Income Tax Act 2023 (No.2), Act 1094.
Addressing the media during an engagement session, Edward Gyamerah, the Commissioner for the Domestic Tax Revenue Division at the GRA, warned that gaming companies failing to comply with the new policy will face penalties, including the revocation of their licenses.
“Effective August 15, we anticipate that when you make payments, you will withhold 10 percent for the Ghana Revenue Authority (GRA). As designated withholding agents, the responsibility lies with you to execute the withholding. Should you fail to fulfill this, considering our discussions with you and with the support of the gaming commission, be prepared for the possibility of having your licenses revoked,” cautioned the Commissioner for the Domestic Tax Revenue Division at GRA.