Francis-Xavier Sosu, the Member of Parliament for Madina, has introduced a private member’s bill in Parliament with four other MPs to repeal the 10% withholding tax on winnings from betting and gaming.
The bill highlights the current economic conditions which it says has increased the cost of living for Ghanaians, making the tax on bet winnings exacerbate the challenges.
In a letter to the Clerk of Parliament dated Thursday, November 07, 2024, the lawmakers established the need to introduce policies that will subdue the challenges of the already suffering Ghanaian rather than burdening them further with higher taxes.
Hammering on the government’s infamous Domestic Debt Exchange Programme (DDEP) which the bill says has made life unbearable for many, it added that taxes, in the nature of the one on winnings from betting and gaming, limits the economic choices of citizens.
“Considering the impact of the Domestic Debt Exchange Programme (DDEP), and the related exacerbation of the twin challenges of unemployment and economic hardships, as well as the seeming lack of adequate safety measures to cushion vulnerable Ghanaians against daily pressing needs.
“There is, therefore, an urgent need to introduce programmes, including tax policies and measures that seek to rescue Ghanaians in light of the harsh economic realities, reduce the cost of living, promote savings and investments, and achieve economic stability and sustainable growth, hence this Bill.”
The withholding tax on gaming winnings, implemented by the Ghana Revenue Authority (GRA) on August 15, 2023, applies to all gross gaming winnings at a rate of 10%.
This tax, which replaced the former 15% VAT on each stake, was introduced in line with the amended Income Tax Act, of 2023 (Act 1094).
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