Tax on lottery is wrong – Alex Dadey

Alex Appau Dadey, the Executive Chairman of KGL Group, has revealed how his organization fought against the introduction of lottery taxes.

During a one-on-one interview on TV3’s Business Focus, he shared that the KGL Group engaged the Ghana Revenue Authority (GRA) and other authorities to demonstrate that the move was misguided.

According to him, the taxation hinders people from investing in betting and utilizing digital methods to grow the economy.

Dadey expressed concern about how some youth may resort to illegal betting as a result of the introduction of taxes on legal operations.

“When I give you an example of the lottery space, for instance, we worked so hard to bring it to this level, and taxing it means reversing the progress we’ve made. Who will bear the burden? We will regress to illegal lottery,” he cautioned.

It is worth noting that in 2023, the NPP government implemented a 10% withholding tax on betting and lottery winnings, sparking public outrage.

This new tax imposed a 20% withholding tax on gross gaming revenue for betting companies. The measure was part of the government's strategy to broaden the tax base and boost domestic revenue.

The decision led to public dissatisfaction and raised doubts about its potential economic impact.

However, in a recent interview with Oyerepa TV, Sammi Awuku, the Director General of the National Lottery Authority (NLA), disclosed that his office has yet to enforce the tax, almost a year after its introduction, due to challenges with the regulatory framework.