The Ghanaian government has announced plans to scrap the betting tax in the 2025 budget, according to the Minister of Youth Development and Empowerment, George Opare Addo. In an interview with JoyNews, Opare Addo reaffirmed the National Democratic Congress (NDC) government's commitment to fulfilling its campaign promises, including the abolition of the betting tax.

The betting tax, introduced in August 2023, imposes a 10% levy on betting and lottery winnings. The Ghana Revenue Authority (GRA) automatically deducts the withholding tax at the point of pay-out for all betting, gaming, and lottery wins. However, the tax does not apply in cases where a game is cancelled and the player's initial stake is refunded, or if the pay-out amount is equal to or less than the staked amount.

The Minister's announcement aligns with recent reports indicating that the Finance Minister, Dr Cassiel Ato Forson, is working to eliminate nuisance taxes, including the betting tax, as part of efforts to broaden the tax base and enhance domestic revenue mobilization. Ghana recently entered into a three-year IMF bailout programme in May, following a prolonged period of economic difficulties.

The introduction of the betting tax was aimed at enhancing domestic revenue mobilization, given Ghana's relatively low tax-to-GDP ratio within the sub-region. However, the tax has been seen as a financial burden on bettors across the country. The abolition of the betting tax is expected to provide relief to these individuals and ease the financial strain.

In addition to the betting tax, the GRA has required lottery operators to update their software to display details of the amount staked, winnings, and the tax withheld during pay-outs. This is aimed at facilitating efficient monitoring by tax authorities. Non-compliance with the new regulations could result in the withdrawal of licences for sports betting firms, lottery operators, casinos, slot machine operators, and marketing promoters.

The move to scrap the betting tax is seen as a positive step towards fulfilling the NDC government's campaign promises and easing the financial burden on Ghanaians. As the country works to revive its economy, policymakers are emphasizing the need to broaden the tax base and enhance domestic revenue mobilization to steer the country back towards sustainable growth.

The abolition of the betting tax is expected to take effect when the 2025 budget is presented in March. The move is likely to have significant implications for the betting and gaming industry in Ghana, and could pave the way for further reforms aimed at stimulating economic growth and development.