In a bid to provide relief for Ghanaians facing economic hardship, Madina’s Member of Parliament Francis-Xavier Sosu, along with four other MPs, has introduced a private member’s bill in Parliament proposing the repeal of the 10% withholding tax on betting and gaming winnings. The MPs assert that, given the current economic climate, removing this tax is essential to reduce financial strain on citizens.
In a letter to the Clerk of Parliament dated November 7, the MPs underscored the urgency of the proposal, stating that the withholding tax on gaming winnings intensifies the financial difficulties of many Ghanaians. With the ongoing impact of the Domestic Debt Exchange Programme (DDEP), they argue, policies should aim to ease the financial burden, not add to it.
“The impact of the Domestic Debt Exchange Programme (DDEP) has intensified economic challenges, particularly with regard to unemployment and the cost of living,” the letter reads. “This bill seeks to provide a measure of relief to Ghanaians by repealing a tax that not only constrains economic choice but also limits spending power and savings potential for those who rely on gaming winnings as a source of income.”
The withholding tax, introduced by the Ghana Revenue Authority (GRA) on August 15, 2023, replaced the previous 15% VAT on individual stakes and was enacted under the amended Income Tax Act, 2023 (Act 1094). The new tax requires a 10% deduction on all gross gaming winnings, a measure that has sparked significant debate since its implementation. Critics argue that this levy has unfairly targeted casual bettors and low-income earners who turn to gaming as a financial outlet during difficult economic times.
The MPs emphasize that while the government has introduced tax policies to improve revenue collection, balancing revenue needs with citizens’ financial realities is crucial. “There is an urgent need to introduce policies that address economic stability and support sustainable growth,” the MPs stated. “This bill is a step toward achieving that, by promoting savings and investment while providing economic relief.”
