10% tax on betting and gaming wins begins August 15; GHS 1.2bn total revenue targeted in first year
The Ghana Revenue Authority (GRA) is set to implement a new tax regime that will see a 10% withholding tax applied to the gross winnings from betting, gaming, lotto, and other games of chance. The move comes in the wake of the recent passage of the Income Tax (Amendment – No 2, Act 2023), signaling a significant shift in the country’s taxation landscape.
According to Edward Gyambrah, the Commissioner of the Domestic Tax Revenue Division (DTRD), the forthcoming taxation policy aims to cast a wider net over revenue sources within the gaming sector. Speaking at a media engagement event in Accra, Gyambrah highlighted that the 10% deduction would encompass a spectrum of gaming activities, including private lotto operations, sports betting enterprises, casinos, remote interactive game operators, marketing promotions, and various other chance-based games.
The policy has already been in effect for casinos, route operators, and marketing promotions companies since June 1, 2023. However, the spotlight will now shift to the commencement of its application to sports betting and private lotto operations starting August 15, 2023.
Gyambrah stressed the GRA’s ambitious projection of raising around GH¢1.2 billion in the inaugural year of the policy’s implementation, with gradual increments in subsequent years. The Commissioner underlined the policy’s broader objective, emphasizing that its purpose is to encompass a broader cross-section of participants in these industries and promote revenue mobilization for developmental initiatives.
Non-compliance with these regulations, Gyambrah cautioned, could result in sanctions and the revocation of operational licenses.
In a bid to bolster domestic revenue mobilization, the GRA has undertaken a slew of tax policy initiatives, including the introduction of Electronic VAT, Electronic Tax Clearance Certificates, upfront payments on imported goods, and excise tax stamps. Additionally, the GRA has embarked on a series of exercises, such as e-VAT invigilation, test purchases, and mystery shopping, to enhance revenue collection.
Against this backdrop, the GRA has set an ambitious revenue target of GH¢106 billion for the fiscal year 2023, with the Customs Division anticipated to contribute approximately GH¢28.5 billion to this goal. As Ghana takes proactive steps to broaden its revenue streams, the impact of these policies on the gaming sector and revenue mobilization remains keenly watched.
