Betting is a starting capital for the youth, remove the 10% tax – NDC’s Magoo

A member of the Communications Team for the National Democratic Congress (NDC), Margret Ansei, also known as Magoo, has kicked the government’s new 10% withholding tax on betting and lottery winnings.

She argues that betting acts as a means for the youth to raise start-up capital and imposing taxes on it would further impoverish them.

“I think there should be some consideration around it,” she said.

Expressing her concerns, according in a metrotvonline.com news report, Magoo vehemently opposed the new tax, which the government stated is intended to discourage youth involvement in betting.

“There are no jobs. The rate of unemployment is so high. The Ghanaian youth has nothing doing so when they wake up aside [from] social media and other things, the other means of survival is through this betting.

“I don’t really know how much they do it what they put into it and so ever. But if someone gets a little from betting and can probably use it to start a business (I don’t know how much they get) but if you can get GHS2000, GHS3000 from you can go to farming with it or someone can start an online business or something with it and you are taxing and taxing the gross and taxing 10% we think it is so outrageous and the government must consider it,” she argued.

Magoo criticised the current taxation strategy of the government, asserting that it contradicts the promises made by the Akufo-Addo administration during its campaign.

She emphasised that policies and actions should prioritise the national interest and the well-being of the people, especially considering Ghana's predominantly young population.

“This is a people-centred democracy so policies and everything should be about the national security and the national interest. Where’s the national interest? The people. This is a country where 60% of its people are below 60 years per the Ghana Statistical Service [report] so, the youth are into it.

“You are taxing the gaming institutions already. The young man who has let’s say GHS50 and has gone to bet and gotten let’s say GHS2,000; I mean taking 10%,” she said.

The 10% withholding tax on gross gaming profits took effect on August 15, 2023. The Ghana Revenue Authority (GRA) announced that each wager would no longer be subject to the previous 15% Value Added Tax (VAT) rate. Instead, the earnings from each successful bet would be subject to withholding tax.

The GRA's Commissioner of the Domestic Tax Revenue Division, Edward Gyamerah, emphasised the enforcement of the new regulations. He stated that gaming corporations must adhere to the updated rules and withhold 10% of the winnings for remittance to the GRA.

NW/DAG

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