The Coalition of Small Business Owners (CSBO) is requesting Finance Minister Ken Ofori-Atta to temporarily halt the taxes imposed on Lottery and Sports Betting companies as well as their customers.
This comes after the recent announcement of a 20% tax on the revenue of Lottery and Sports Betting Companies, and a 10% tax on winnings.
According to Justice Ayeh Donkor, the convener of the group, these taxes are having a negative impact on private sector growth and causing businesses to collapse.
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The CSBO highlights that since 2016, the Akufo-Addo-led government has introduced approximately 22 taxes, which has created a hostile business environment and is adversely affecting the private sector.
Mr. Ayeh Donkor emphasizes that these taxes, particularly the 20% and 10% levies on Lottery and Sports Betting, could lead to the downfall of the National Lottery Authority and Lotto Marketing Companies.
In the past, there were already taxes imposed on lottery winnings, but the NPP, while in opposition, had pledged to remove them and restore the Retailer Commission to 25% for the Lotto Marketing Companies. However, those promises were not fulfilled after they came into power.
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In 2017, the National Lottery Authority proposed the elimination of taxes to attract more mainstream operators, and the taxes were indeed removed. However, in 2023, the government reintroduced them at higher rates – 20% on the company’s revenue and 10% on winnings.
In light of these developments, the CSBO is urging Ken Ofori-Atta and the government to immediately suspend the 20% and 10% taxes on Lottery and Sports Betting companies and winnings, respectively.
“We shall resist these taxes at all cost and also demonstrate against the Government and Ken Ofori-Atta should the Finance Minister fail to address the issue during the Mid-Year Budget review”.
