The Majority Leader, Osei Kyei-Mensah-Bonsu, has justified the newly introduced 10 percent withholding tax on betting and lottery winnings.
In an interview on Angel FM in Kumasi, the Suame MP passionately upheld the decision by the Ghana Revenue Authority (GRA) to impose a 10 percent withholding tax on bet and lottery winnings.
He argued that the surge of betting companies has contributed to a sense of laziness among the nation’s youth.
“I don’t believe in betting. I don’t believe in luck. I believe in hard work and sweat to get money. Let’s be serious. As for me, I’m against betting coming into the country. I don’t support it because it doesn’t encourage hard work.”
“As an individual, I don’t engage in the lottery because I don’t believe in that. I don’t believe in luck. Work hard so God will bless it.”
The Ghana Revenue Authority (GRA) on Monday, August 7, announced that it will begin implementing a 10% withholding tax on all gross gaming winnings from August 15, 2023.
The GRA explained that the withholding tax will be charged on profits accrued after each win and that the existing 15% Value Added Tax (VAT) rate on each stake will no longer be charged.
The GRA said that the new policy is in line with an amendment to the Income Tax Act 2023 (No.2), Act 1094.
Speaking at a media engagement session, the Commissioner for the Domestic Tax Revenue Division at the GRA, Edward Gyamerah, said that gaming companies that fail to comply with the new policy will face sanctions, including the withdrawal of their licenses.
“Come August 15, we expect that when you are making the payments, you will withhold 10 percent to the Ghana Revenue Authority (GRA). As you have been appointed as withholding agents, the obligation is on you to withhold. If you fail to do that, with the interactions we had with you and with the support of the gaming commission, you can be assured that your licenses will be withdrawn,” the Commissioner for the Domestic Tax Revenue Division at GRA cautioned.