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10% Betting Tax: Government yet to implement revenue collection - NLA Director-General

Sammi Awuku Sammi Awuku Sammi Awuku Sammi Awuku Sammi Awuku   121315432 Sammi Awuku, Director General of the National Lottery Authority

Tue, 17 Sep 2024 Source: www.ghanaweb.com

The Director General of the National Lottery Authority, Sammi Awuku, has asserted that the government has not yet implemented the 10% tax on betting.

In 2023, the Ghana Revenue Authority (GRA) notified sporting and lottery companies of a 10% tax on all winnings from sports betting and lotteries, which was to take effect on August 15. This measure was part of the government's efforts to expand the tax base and increase domestic revenue.

The policy first came to light when Parliament passed three new bills in March 2023: the Excise Duty Amendment Bill 2022, the Growth and Sustainability Levy Bill 2022, and the Income Tax Amendment Bill 2022. Five months after the bills were passed, the GRA reminded individuals who participate in gaming activities of the new policy.

The announcement of the tax implementation received significant public backlash, with many Ghanaian sports fans expressing concern over its potential impact on their earnings.

However, in an interview with Oyerepa TV, Sammi Awuku, the Director General of the National Lottery Authority, revealed that his office has yet to implement the tax, nearly a year after it was introduced, due to challenges with the framework guiding the process.

"Even with that, the truth of the matter is that we have not been able to implement it. I am telling you today. As I sit here as the Director General for National Lotteries, I have not been able to implement it. Because, first of all, we have a wide market of illegal operators. So you don’t even know them to go and tax them. We had a meeting with the GRA, and have been in correspondence over the last eight months, along with the Ministry of Finance. Recently, when the NLA was forcing known private lottery operators to come forward for licensing, you saw the reaction in the streets.

"Now that they are licensed, we can go back to them and discuss how to collectively support the government's plan, ensuring the business survives, the NLA survives, and still generates enough revenue for the government. This is where we are," Sammi Awuku said.

He further stated that no taxes have yet been collected from betting activities.

"We haven't been able to collect even a cedi. As I sit here, I have not been able to collect the tax. They wrote to me that, as Director General, I am to collect the tax. But I have not been able to collect the tax because the framework is difficult. We are still in discussions with the GRA and the Ministry of Finance on the modalities because, to be honest, we didn’t even know them [the operators]. We just licensed them two weeks ago, and it is estimated that there are about 380 illegal operators still unaccounted for."



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Source: www.ghanaweb.com