The Member of Parliament for Madina, Francis-Xavier Sosu, along with four other MPs, has introduced a private member’s bill in Parliament calling for the repeal of the 10% withholding tax on winnings from betting and gaming in Ghana.
In a letter dated November 7, 2024, addressed to the Clerk of Parliament, the MPs highlighted the urgency of the proposed move, particularly in light of the ongoing economic difficulties faced by many Ghanaians.
The MPs stressed that the current tax burden is exacerbating the financial struggles of citizens, especially considering the challenges created by the Domestic Debt Exchange Programme (DDEP) and the broader economic environment.
The MPs argued that the tax on gaming winnings only adds to the financial strain on Ghanaians and limits their economic options at a time when the country is grappling with unemployment, rising costs of living, and other pressing economic concerns.
They further called for policies that could alleviate these issues, reduce the cost of living, and stimulate savings and investment as part of a broader push for economic stability and growth.
The withholding tax, introduced by the Ghana Revenue Authority (GRA) on August 15, 2023, applies a 10% tax rate on all gross gaming winnings.
This new tax replaced the former 15% Value Added Tax (VAT) on betting stakes, which had been part of the amended Income Tax Act of 2023 (Act 1094).
The bill introduced by Sosu and his colleagues aims to remove this tax, arguing that it further burdens Ghanaians who are already struggling in the current economic climate.
The MPs hope the proposal will be considered seriously by the government and Parliament as part of efforts to address the financial pressures on the public.
