The Presidential candidate for the Liberal Party of Ghana (LPG), Kofi Akpaloo has announced plans to increase the betting tax rate from 10% to 60% if he wins the December 7 elections.
Mr. Akpaloo stated that if elected, he would prioritize job creation for the youth and eliminate distractions such as sports betting to ensure they stay focused and engaged.
He emphasized that betting is not a sustainable way to make a living, and increasing the tax would help reduce its appeal.
“I didn’t say I am going to cancel it [betting tax]. I said if I have my way, I will increase the tax to discourage them [youth]. If they will, maybe 60% at least. I want to give them jobs to do so that they focus,” he said.
His stance is in contrast to the promises made by his political rivals, including the New Patriotic Party (NPP) flagbearer, Dr. Mahamudu Bawumia, and the National Democratic Congress (NDC) flagbearer, John Mahama, both of whom have vowed to abolish the betting tax.
Mr Akpaloo contends that the most effective strategy is to make sports betting less financially attractive, thereby encouraging the youth to focus on more constructive activities.
The debate over betting taxes follows the introduction of a 10% tax on gross winnings from lottery games, casinos, and promotional raffles, effective August 15, 2023.
This tax, established under the Income Tax (Amendment) Act, 2023 (Act 1094), applies to all winnings from betting, gaming, and other games of chance.
The Ghana Revenue Authority (GRA) expects to generate around GH¢1.2 billion from this tax initially, with projections reaching GH¢3 billion over time.
The tax is collected by lottery operators and paid directly to the GRA.
This tax covers winnings from private lotto operators, sports betting, casino operations, and other promotional activities.