The Ghana Revenue Authority (GRA) has issued a notice to both sporting and lottery companies regarding the upcoming implementation of a 10% tax on all winnings from sports betting and lotteries, set to take effect on August 15.
This tax initiative is a part of the government’s overarching strategy to broaden the tax base and bolster domestic revenue.
The announcement of this tax measure initially surfaced when Parliament passed three new bills in March 2023. These bills include the Excise Duty Amendment Bill 2022, the Growth and Sustainability Levy Bill 2022, and the Income Tax Amendment Bill 2022.
Please note effective 15th August, all winnings in Gaming, Betting, Lottery and Games of Chance attract 10% Withholding Tax.
This does not include the amount invested in staking or playing the games. #WithholdingTax #BettingTax #LotteryTax #10PercentTax #TaxOnBetting… pic.twitter.com/zczhELiRqz
— GRA (@GhanaRevenue) August 8, 2023
As the implementation date approaches, the GRA is actively cautioning individuals who participate in sports betting and lottery activities to be aware of the forthcoming policy and ensure adherence.
While the government aims to enhance revenue streams through this step, there has been a substantial amount of backlash. Many individuals engaged in betting and lotteries have criticized the government’s move, labelling it as insensitive to their concerns. The decision has sparked intense discussions about the potential implications of the tax on the betting and lottery communities.