Betting tax proved counterproductive – Sammy Awuku

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Sammy Awuku, former Director-General of the National Lottery Authority (NLA) and Member of Parliament for Akuapem North, has expressed his support for the government’s decision to abolish the betting tax.

Awuku, who has been an outspoken critic of the tax, even during the previous administration, referred to it as a counterproductive measure that has proven ineffective in many regions.

“I’m excited that the betting tax is going to be scrapped,” Awuku stated in an interview with Daily Guide Network (DGN). “I’ve been consistent about it, even during the NPP era, and I’ve always said it has not worked in many jurisdictions whenever betting taxes have been introduced.”

He emphasized the tax’s negative impact, particularly on government-owned entities like the National Lottery Authority (NLA).

“Lottery was included in the betting tax. The NLA, being a government-owned institution, has its own responsibilities. However, at the end of the day, it must also contribute to the national coffers,” he added.

He pointed out the dilemma posed by the tax, which made illegal betting operators more attractive to players. “If the government is taxing itself, then what will happen is that the underground operators that we call the illegal operators will become emboldened.

“If you play with the government, you attract a 10% tax on what you win. But if you play with the illegals, you get your full money. So, I told them that, for me, it was counterproductive,” he added.

Awuku’s criticism extended beyond the tax policy itself to what he described as inconsistencies within the ruling National Democratic Congress (NDC) government. He noted that earlier comments by the Finance Minister-designate had gone beyond scrapping the tax to suggesting that betting and lottery activities should be banned entirely.

“The difficulty with the NDC position is that earlier the Finance Minister-designate, in time past, had said that it should be banned—not just the tax being scrapped,” he said.