In a bold legislative move, Madina Member of Parliament Francis-Xavier Sosu, joined by four other MPs, has introduced a private member’s bill aimed at repealing the 10% withholding tax on betting and gaming winnings. The tax, which took effect on August 15, 2023, applies to all gross winnings and was implemented under Ghana’s amended Income Tax Act, 2023 (Act 1094), replacing the previous 15% VAT on each stake.
In a formal letter dated November 7 to the Clerk of Parliament, the MPs argued that the tax exacerbates the financial struggles of many Ghanaians, particularly as the nation grapples with economic challenges heightened by the Domestic Debt Exchange Programme (DDEP). The bill underscores the need to implement policies that provide financial relief and economic stability.
The MPs highlighted the urgency of such measures, especially given the impact of the DDEP on employment and household incomes. “Considering the economic hardships and the twin challenges of unemployment and inflation, this bill is a necessary intervention to provide relief, promote savings and investment, and reduce the cost of living,” the MPs stated in the letter.
The current tax has drawn public criticism for its potential to deter individuals who rely on gaming winnings as a supplemental income source, particularly in the absence of adequate social safety measures. If passed, the repeal would serve as part of a broader legislative effort to stabilize the economy and support Ghanaians facing financial strain.
