Immediate past Director-General of the National Lottery Authority (NLA) and a New Patriotic Party (NPP) Member of Parliament for Akuapem North, Sammy Awuku, has welcomed the Mahama-led government’s decision to abolish the betting tax.
Mr. Awuku, a steadfast critic of the tax even during his tenure in the previous administration, described it as a counterproductive measure.
Speaking to a local media outlet, he emphasized the tax’s ineffectiveness in generating positive outcomes.
“I’m excited that the betting tax is going to be scrapped,” he remarked. “I’ve been consistent about it, even during the NPP era, and I said it is something that personally has not worked in many jurisdictions anytime you have introduced taxes on betting.”
Highlighting its detrimental impact, Mr. Awuku noted the tax’s unintended consequences, particularly for government institutions like the NLA.
He explained, “Lottery was part of the betting tax. The NLA, for instance, is owned by the government, and apart from the things that they do, at the end of the day, they must also contribute to the national kitty.”
He warned that the tax incentivized illegal betting activities, creating an uneven playing field. “If the government is taxing itself, then what will happen is that the underground operators that we call the illegal operators will become emboldened. If you play with the government, you attract a 10% tax on what you win. But if you play with the illegals, you get your full money. So, I told them that, for me, it was counterproductive,” Mr. Awuku stated.
His comments also addressed perceived inconsistencies in the approach of the National Democratic Congress (NDC) government. For instance, he referenced earlier remarks by the Finance Minister-designate, Dr. Cassiel Ato Forson, who had previously advocated for the prohibition of betting and lottery activities entirely.
“The difficulty with the NDC position is that earlier the Finance Minister-designate, in time past, had said that it should be banned—not just the tax being scrapped,” he pointed out.
