Dr. Cassiel Ato Forson, the Ranking Member on Parliament’s Committee on Finance and leading member of the opposition National Democratic Congress (NDC), has raised concerns about the impact of the newly introduced tax on sports betting in Ghana.
He acknowledged the effects of gambling on the younger generation and expressed his surprise that the government failed to take a daring stance against it rather than impose a “nuisance tax”.
In a recent interview Dr. Forson said, “Ghana today, we are complaining that this gambling is destroying our youth. I have read a number of articles on this. I would have thought the government will come out with a policy to restrict gambling and to even ban it.”
Dr. Forson’s main contention lies in the government’s decision to introduce a 10% tax on sports betting,. He perceives this as a “lazy approach” to addressing the issue and believes that the government should alternatively focus on pushing for the Tax Exemption Bill.
He added that the Tax Exemption Bill would be far more effective than the 10% tax. According to him, the Tax Exemption Bill alone could contribute significantly to the country’s GDP, potentially adding up to 2.5%.
He criticized the government’s priorities, saying, “Instead of the government of Ghana going back to push that Exemption Bill; they have decided to tax us because that is easy.”
Background: The issue of taxation in the gaming industry has been a topic of concern for a while. The government’s 2023 Budget presentation to Parliament revealed that the country was losing over GHS 300 million annually due to unaccounted for funds in the gaming sector.
In response to these concerns, the Ministry of Finance and the Ministry of Interior have been directed to collaborate and develop a comprehensive policy to enhance revenue generation from the gaming sector. This directive aims to strike a balance between addressing the revenue loss and safeguarding the interests of the youth, hence the introduction of the 10% tax on sports betting which was effective August 15, 2023.
This has however triggered a backlash from both punters and the general public. Many Ghanaians are expressing their displeasure with the government’s decision, highlighting concerns about the economic burden this tax could impose on individuals who engage in sports betting. The move has also sparked broader discussions about the role of gambling in society and the appropriate measures to regulate it.
