The Minority in Parliament has reacted to government’s 2025 Fiscal policy, criticizing some key tax reforms by the government.
Addressing the media in Parliament shortly after the presentation of the 2025 Budget Statement and Economic Policy, the Karaga MP and former finance minister, Dr. Amin Adam accused the government of deceiving Ghanaians by committing to abolish the VAT on motor insurance and the betting tax.
He claimed that the previous NPP administration never implemented the betting tax and VAT on motor insurance, hence Ghanaians should not rejoice over the announcement to remove these taxes as they never existed.
“Ladies and Gentlemen, betting tax that they said they had abolished, we never collected betting tax. We never implemented the betting tax so to come and tell Ghanaians that you have abolished something that was never implemented is to deceive the people of Ghana,” he stated.
On the VAT on motor insurance, the Minority asserts that government is rather trying to outsmart Ghanaians by re-introducing VAT on non-life insurance with the exemption of the VAT on vehicle motor insurance.
“The Minister announced that they are abolishing VAT on motor insurance. Ladies and Gentlemen, we were already not collecting VAT on motor insurance. VAT on motor insurance was exempted rather the minister was trying to be smart, they have re-introduced VAT on non-life insurance with the exemption of the vehicle motor insurance. So, all other insurance given that the penetration of the insurance industries is 1.1%, we are so shocked that the Minister will reintroduce VAT on non-life insurance except VAT on motor insurance,” he added.
Introduction of betting tax
Following the passage of the Income Tax Act, 2023 (Act 1094), the Ghana Revenue Authority (GRA) announced that it will begin implementing a 10% withholding tax on all gross gaming winnings from August 15, 2023.
The GRA explained that the withholding tax will be charged on profits accrued after each win and that the existing 15% Value Added Tax (VAT) rate on each stake will no longer be charged.
The GRA said that the new policy is in line with an amendment to the Income Tax Act 2023 (No.2), Act 1094.
The betting tax was implemented with the hope of curbing the rate of gambling and generating more revenue for the country.
However, the move was met with widespread dismay by Ghanaian bettors, who felt the government was being insensitive to their plight.
READ ALSO: We will abolish the 10% betting tax -Cassiel Ato Forson, Finance Minister
Many youth urged President Mahama prior to the 2024 elections to scrap the tax. The NDC promised to abolish the betting tax if elected, a key factor which mobilized the youth to vote for the party in the 2024 elections.
Dr. Ato Forson noted that the betting tax generated a revenue of GH¢180 million.
