5 NDC MPs Introduce Bill To Abolish Betting Tax

In a significant move addressing financial pressures faced by Ghanaians, MP for Madina, Francis-Xavier Sosu, along with four other legislators from the National Democratic Congress (NDC), have proposed a private member’s bill in Parliament to repeal the recently imposed 10% withholding tax on betting and gaming winnings. In a formal communication dated November 7, the MPs expressed their concerns to the Clerk of Parliament, underlining the critical need for policies that would lessen economic strain on citizens.

The legislators emphasized that the withholding tax on gaming winnings exacerbates the financial challenges that many Ghanaians currently face, particularly following the recent Domestic Debt Exchange Programme (DDEP). In their letter, they noted, “With the impact of the Domestic Debt Exchange Programme (DDEP) and the combined challenges of unemployment and economic hardship, it is essential to implement policies, including tax relief measures, to ease the cost of living, encourage savings and investment, and support sustainable economic growth for Ghanaians.”

The 10% tax, introduced by the Ghana Revenue Authority (GRA) on August 15, 2023, replaced the prior 15% VAT on each gaming stake. It is part of the updated Income Tax Act of 2023 (Act 1094) and applies to gross winnings from all forms of gaming. According to the MPs, the bill seeks to reverse this tax as a means of alleviating the financial burden on Ghanaians, particularly as economic pressures continue to rise.

By repealing this tax, the legislators hope to provide immediate financial relief and contribute to a more resilient economy by allowing citizens to retain a larger portion of their gaming winnings. This move, they believe, would help foster economic stability and growth amid the challenges posed by rising living costs and unemployment rates.

Source: GhanaFeed.Com