Five NDC legislators led by MP for Madina Constituency, Francis-Xavier Sosu, have introduced a private member’s bill in Parliament to repeal the 10% withholding tax on winnings from betting and gaming.
In a letter dated November 7, addressed to the Clerk of Parliament, the MPs highlighted the pressing economic challenges facing Ghanaians and stressed the need for policies that alleviate their financial burdens.
They argued that the gaming-winning tax exacerbates the financial strain on many citizens, particularly in the aftermath of Ghana’s economic woes.
This intervention aims to ease Ghanaians’ economic hardships by eliminating what they see as an undue tax burden.
The MPs noted, “Considering the impact of the Domestic Debt Exchange Programme (DDEP) and the compounded challenges of unemployment and economic hardship, there is an urgent need to introduce policies, including tax relief measures, to help alleviate the cost of living for Ghanaians, promote savings and investments, and foster sustainable economic growth.”
The Ghana Revenue Authority (GRA) introduced a 10% withholding tax on all gaming and betting winnings effective August 15, 2023. This tax applies to the total amount won, meaning that winners are taxed on their gross earnings.
It replaced the earlier system, which imposed a 15% Value Added Tax (VAT) on each stake. The change was implemented as part of the amended Income Tax Act of 2023 (Act 1094).
By proposing this repeal, the MPs aim to reduce the financial pressure on individuals, especially the youth, who often rely on gaming as a form of supplementary income.