Ghana’s Parliament has officially approved the repeal of the controversial Betting Tax, taxes on gaming and lotteries, and the 1.5% withholding tax on unprocessed gold. This decision follows the passage of the Income Tax (Amendment) Bill, 2025, on Wednesday, March 26, 2025.
The Betting Tax, which had been introduced as a 10% levy on gross winnings, was initially designed to regulate gambling activities and boost government revenue. However, it faced significant opposition from bettors and gaming operators, who argued that it placed an unfair financial burden on them.
During the 2024 election campaign, the National Democratic Congress (NDC) had pledged to abolish the tax, calling it a “nuisance tax.” True to this promise, Finance Minister Dr. Cassiel Ato Forson announced its removal in the 2025 budget statement, a proposal that Parliament has now formally endorsed.
In addition to scrapping the Betting Tax, Parliament also approved the Electronic Transaction Levy (E-Levy) Repeal Bill, 2025, thereby abolishing the widely unpopular digital tax. The E-Levy, introduced on March 29, 2022, by the previous government, imposed a tax on electronic transactions such as mobile money transfers and online payments, aiming to generate revenue for national development. However, the policy failed to produce the expected financial returns and faced significant resistance from citizens and businesses alike.
Dr. Forson reiterated the government’s commitment to eliminating "burdensome taxes" during his budget presentation on March 11, 2025. He highlighted the government’s broader strategy to streamline the tax system and stimulate economic activity, which includes removing the Emissions Tax and the COVID-19 Levy.
Background of the Betting Tax
The Ghana Revenue Authority (GRA) had announced the introduction of a 10% withholding tax on lotto, betting, and gaming winnings in December 2023 under the Income Tax (Amendment) Act, 2023 (Act 1094). After a six-month extension, the tax officially came into effect on January 1, 2024. Despite warnings from the GRA that non-compliance would result in sanctions under Section 78 of the Revenue Administration Act, 2016 (Act 915), the tax remained unpopular, prompting widespread calls for its removal.
With the repeal of these taxes, the financial burden on bettors, digital transaction users, and small-scale gold traders is expected to lighten, a move that has been widely welcomed by the public. The approved bills will now be forwarded to President John Mahama for final assent.
Source; theghanareport
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