The Ghana Revenue Authority (GRA) has announced a significant change in taxation, affecting lottery wins, casino earnings, and promotional raffles.
Effective August 15, 2023, all such winnings will now incur a 10% withholding tax, which will be considered a final tax.
Amidst the country’s high unemployment rate, many young individuals have turned to sports betting for income generation. However, the recent tax development has stirred anger among the youth. They are calling upon major stakeholders to abolish the tax, citing its potential impact on their already limited earnings.
The GRA anticipates an initial mobilization of approximately GH¢1.2 billion from the implementation of the new tax on lottery operators. This figure is expected to rise to around GH¢3 billion in subsequent stages. The change follows the passing of the Income Tax (Amendment) Act, 2023 (Act 1094), mandating the withholding tax on all lottery wins.
Edward Gyambrah, the Commissioner of the Domestic Tax Revenue Division of the GRA, emphasized the need for all lottery operators to adhere to the law. They must withhold 10% of the tax on gross winnings and remit payments to the Authority.
Non-compliant operators risk losing their licenses, with the support of the Gaming Commission of Ghana.
In light of this, operators are required to update their software to display essential information such as stake amounts, winnings, and withheld tax for reporting purposes.
This new development is geared towards boosting domestic revenue generation, aligning with the GRA’s initiatives for sustained economic growth, according to experts.
