Majority Leader, Osei Kyei-Mensah-Bonsu has defended newly implemented 10% withholding tax on betting and lottery earnings.
In an interview with Angel FM in Kumasi, the Suame MP vehemently defended the Ghana Revenue Authority’s (GRA) decision to impose a 10% withholding tax on bet and lottery profits.
He stated that the proliferation of betting companies has contributed to a sense of apathy among the nation’s youth.
“I don’t believe in betting. I don’t believe in luck. I believe in hard work and sweat to get money. Let’s be serious. As for me, I’m against betting coming into the country. I don’t support it because it doesn’t encourage hard work.”
“As an individual, I don’t engage in the lottery because I don’t believe in that. I don’t believe in luck. Work hard so God will bless it.”
The Ghana Revenue Authority (GRA) stated on Monday, August 7, that a 10% withholding tax on all gross gaming earnings will be implemented beginning August 15, 2023.
According to the GRA, withholding tax will be paid on earnings accrued after each win, and the previous 15% Value Added Tax (VAT) rate on each stake would no longer be charged.
According to the GRA, the new policy is in accordance with an update to the Income Tax Act 2023 (No.2), Act 1094.
The GRA’s Commissioner for the Domestic Tax Revenue Division, Edward Gyamerah, stated at a media engagement session that gaming enterprises that fail to comply with the new policy will face fines, including the loss of their license.
“Come August 15, we expect that when you are making the payments, you will withhold 10 percent to the Ghana Revenue Authority (GRA). As you have been appointed as withholding agents, the obligation is on you to withhold. If you fail to do that, with the interactions we had with you and with the support of the gaming commission, you can be assured that your licenses will be withdrawn,” the Commissioner for the Domestic Tax Revenue Division at GRA cautioned.