The introduction of a 10 percent withholding tax on winnings from betting and lotteries has been defended by Osei Kyei-Mensah-Bonsu, the Majority Leader.
During an interview on Angel FM in Kumasi, the Suame MP passionately supported the decision of the Ghana Revenue Authority (GRA) to impose this tax on earnings from betting and lotteries.
He contended that the proliferation of betting companies has contributed to a culture of idleness among the youth of the nation.
The Ghana Revenue Authority (GRA) recently announced its intention to begin implementing a 10% withholding tax on all gross gaming winnings starting from August 15, 2023.
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“I don’t believe in betting. I don’t believe in luck. I believe in hard work and sweat to get money. Let’s be serious. As for me, I’m against betting coming into the country. I don’t support it because it doesn’t encourage hard work.”
“As an individual, I don’t engage in the lottery because I don’t believe in that. I don’t believe in luck. Work hard so God will bless it.”
According to the GRA, the withholding tax will be applied to profits gained after each win, 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.
During a media interaction, Edward Gyamerah, the Commissioner for the Domestic Tax Revenue Division at the GRA, mentioned that gaming companies that fail to adhere to this new policy will face penalties, potentially including the revocation of their licenses.
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“Come August 15, we expect that when you are making the payments, you will withhold 10 percent to the Ghana Revenue Authority (GRA). As you have been appointed as withholding agents, the obligation is on you to withhold. If you fail to do that, with the interactions we had with you and with the support of the gaming commission, you can be assured that your licenses will be withdrawn,” the Commissioner for the Domestic Tax Revenue Division at GRA cautioned.
