
Sammy Awuku, former Director-General of the National Lottery Authority (NLA) and Member of Parliament for Akuapem North, has commended the government for its decision to abolish the controversial betting tax. Awuku, a staunch critic of the policy, expressed his long-standing opposition during an interview with the Daily Guide Network (DGN), citing its ineffectiveness in other countries and its detrimental impact on the betting industry.
“I’m excited that the betting tax is going to be scrapped,” Awuku remarked. “Even during the NPP era, I consistently stated that it has not worked in many jurisdictions where it has been implemented.”
Impact on the National Lottery Authority
Awuku emphasized the adverse effects of the tax on the NLA, a government-owned entity tasked with generating revenue for the state. He highlighted the inherent disadvantage posed by the tax, which pushed players toward illegal operators who did not impose such levies.
“Lottery was part of the betting tax. The National Lottery Authority, owned by the government, is expected to contribute to the national purse,” he explained. “But when the government taxes itself, it inadvertently creates an opportunity for underground operators to thrive. If you play with the government, you face a 10% tax on your winnings, but if you play with illegal operators, you get your full amount. This scenario emboldened the illegals and rendered the tax counterproductive.”
Broader Concerns
Awuku also raised concerns about the initial position of the Finance Minister-designate, who had previously suggested a complete ban on betting and lottery activities. While Awuku acknowledged the need for regulation, he maintained that outright bans and excessive taxation hinder the growth of the industry and push players into unregulated and illegal markets.
The decision to remove the betting tax marks a significant shift in policy, with advocates like Awuku hopeful it will create a level playing field and curb illegal activities in the sector.
Source: GhanaFeed.Com