In a letter addressed to the Clerk of Parliament on 7th November, the MPs highlighted the urgency of this proposal, particularly in light of the current economic challenges and the need for policies that alleviate financial strain on Ghanaians.
The MPs argue that the tax on gaming winnings only exacerbates financial hardships and limits economic choices for citizens, especially as they deal with the economic consequences of the Domestic Debt Exchange Programme (DDEP).
“Considering the impact of the Domestic Debt Exchange Programme (DDEP) and the exacerbation of the twin challenges of unemployment and economic hardship, as well as the apparent lack of adequate safety measures to protect vulnerable Ghanaians from daily pressures, there is an urgent need to introduce programmes, including tax policies and measures, that aim to rescue Ghanaians in light of these harsh economic realities. These measures should focus on reducing the cost of living, promoting savings and investment, and achieving economic stability and sustainable growth. Hence, this Bill.”
The 10% withholding tax on gaming winnings, introduced by the Ghana Revenue Authority (GRA) on 15th August 2023, applies to the total amount of winnings from gaming activities. This measure replaced the previous 15% VAT applied to individual stakes and was implemented in accordance with the updated provisions in the 2023 Income Tax Act (Act 1094).
Betting has become increasingly popular among the youth in many countries, including Ghana. For young people, sports betting, lotteries, and online gaming offer an easy way to engage with sports and potentially earn money quickly. With high youth unemployment and economic challenges, many young Ghanaians see betting as an opportunity to supplement their income or, in some cases, as a way to achieve financial independence.
Social media, mobile technology, and the rapid growth of betting platforms have made it easier than ever for young people to participate. Betting companies often advertise heavily on platforms frequented by young people, portraying betting as a fun, risk-free way to earn money and amplifying its appeal. However, this accessibility can lead to significant downsides, including financial strain, addiction, and disrupted personal lives. While some young people win occasionally, many lose more than they gain, leading to debt and disappointment.