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Majority Leader Supports 10% Tax, Citing Lack of Hard Work Promotion in Betting

Majority Leader, Osei Kyei-Mensah-Bonsu, Backs 10% Withholding Tax on Betting and Lottery Winnings

During an interview on Angel FM in Kumasi, Suame MP Osei Kyei-Mensah-Bonsu expressed firm support for the Ghana Revenue Authority’s (GRA) decision to impose a 10% withholding tax on winnings from betting and lottery activities.

Kyei-Mensah-Bonsu contended that the proliferation of betting firms has contributed to a culture of idleness among Ghana’s youth. He emphasized his personal stance against betting and luck, championing the values of hard work and dedication as the true paths to financial success.

The GRA recently announced the implementation of a 10% withholding tax on gross gaming winnings, effective from August 15, 2023. This new policy replaces the previous 15% Value Added Tax (VAT) rate on each stake.

Edward Gyamerah, the Commissioner for the Domestic Tax Revenue Division at the GRA, stressed that gaming companies must adhere to the new policy or face penalties, including the revocation of their licenses.

Effective August 15, gaming companies are required to withhold 10% of winnings and remit the amount to the GRA. Failure to comply may result in the withdrawal of licenses, as highlighted by the Commissioner for the Domestic Tax Revenue Division.

The implementation of this tax policy reflects an amendment to the Income Tax Act 2023 (No.2), Act 1094. The move aims to ensure tax compliance within the gaming industry and generate revenue for the government.

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