Ghana has implemented a new measure that imposes a 10% tax on betting and lottery winnings, effective immediately.
- The Ghana Revenue Authority (GRA) will automatically deduct the withholding tax at the point of payout for all betting, games, and lottery wins.
- The withholding tax will not be applicable in cases where a game is cancelled and the player’s initial stake is refunded or if the payout amount is equal to or less than the staked amount.
- Lottery operators are required to update their software to display the details of the amount staked, winnings, and tax withheld during payout to facilitate monitoring by the revenue authority.
- The tax initiative aims to enhance domestic tax revenue mobilization in Ghana and address the country’s relatively low tax-to-GDP ratio within the sub-region. However, it has faced criticism from the younger generation who argue that betting and lottery winnings often serve as alternative income sources for the unemployed.