Wrong idea to abolish betting tax - Atik Mohammed tells Dr. Bawumia

Atik Mohammed has dissented to Dr. Mahamudu Bawumia's policy to cancel tax on betting.

The government, through the Ministry of Finance, has imposed a 10% tax on betting and gaming in Ghana.

This tax is directly deducted from the gross income from the stakes, but Dr. Mahamudu Bawumia, the flagbearer of the New Patriotic Party, says he will abolish it if voted into power.

Delivering his vision in an address at UPSA on Wednesday, February 7, 2024, Dr. Bawumia promised to introduce what he termed a "flat tax regime," which, to him, will boost the living conditions of individuals and improve businesses, particularly small and medium-scale enterprises (SMEs).

“My administration will introduce a very simple, citizen and business-friendly flat tax regime. A flat tax of a percentage of income for individuals and SMEs, which constitute 98% of all businesses in Ghana, with appropriate exemption thresholds set to protect the poor," he said.

But to Atik, the bet tax is significant and should be maintained.

The former PNC General Secretary argued that this tax is not only to raise revenues but also to discourage youth from engaging in gambling.

He believed the tax is to straighten out the behavior of the youth.

"In fact, a policy can have multiple objectives. Beyond raising revenue, the other objective that I feel the bet tax seeks to achieve is to cut down on youth getting interested in gambling. So, the bet tax is not just to raise revenue for the government but also to correct a social inadequacy," he commented on Peace FM's "Kokrokoo" show.

To Atik, instead of scrapping this tax, it should rather be increased from 10 percent, stressing that "the rate should even be higher."