Some good news for betting patrons as five (5) NDC Members of Parliament have initiated processes in parliament to get the controversial betting tax abolished.
These five MPs submitted a Private Members Bill to the Clerk of Parliament on Thursday, November 7, 2024, with the aim of getting the House to amend the Income Tax Act, 2023, (Act 1094) to repeal the withholding tax rate on lottery and gaming winnings widely known as betting tax.
This agenda to repeal betting tax through a private members bill is sponsored by Francis-Xavier Kojo Sosu ESQ, MP for Madina, Dr. Cassiel Ato Baah Forson, MP for Ajumako Enyan Esiam, Isaac Adongo, MP for Bolgantaga Central, Teddy Safori Addi, MP for Ayensuano, and Alhassan Sayibu Suhyini, MP for Tamale North.
Citing several academic studies to justify the need for the tax to be repealed, the MPs quoted that people’s behavior when it comes to sports betting doesn’t replace other investment activities. Instead, it works alongside them. This according to them means that betting is more of an additional activity rather than something that replaces an investment culture.
In another study the MPs referenced, it was found that students do not generally view sports betting as immoral. They see some positive aspects of it.
Citing economic reasons why some people engage in sports betting, the MPs indicated that the existing precarious economic conditions especially soaring inflation pushed about 850,000 people into poverty. This worsening macroeconomic environment has resulted in a very high cost of living leading to very poor living conditions for many.
The high rate of unemployment which hovers around 14% was also cited as one of the reasons why people engage in betting to make ends.
“The twin challenges of unemployment and economic hardships, as well as the seeming lack of adequate safety measures to cushion vulnerable Ghanaians against daily pressing needs; there is therefore an urgent need to introduce programmes, including tax policies and measures that seek to rescue Ghanaians in lght of the harsh economic realities, reduce the cost of living, promote savings and investments, and achieve economic stability and sustainable growth, hence this bill,” parts of the document to the Clerk of Parliament read.
Meanwhile, some economists have kicked against the repeal of the betting tax. The Director of the Institute of Statistical Social and Economic Research (ISSER) at the University of Ghana, Prof. Peter Quartey maintains that apart from complementing the government’s domestic revenue, the betting tax is also a means of regulating behaviors since it is addictive.
President of IMANI Center for Policy and Education, Franklin Cudjoe has also earlier opposed the promise to scrap the controversial tax. Instead of totally scrapping the tax, Franklin Cudjoe is recommended that the next government revise the tax downwards.
This process has come earlier than anticipated as both leading presidential candidates of the 2024 General Elections, Dr. Bawumia and Former President Mahama have all promised to abolish this tax in addition to several others.
With parliament’s business currently in limbo due to a standoff over who takes the majority side, the fate of this private members bill is unknown.
