Ghana’s government has announced plans to abolish the controversial 10% betting tax in the upcoming 2025 budget, fulfilling a key campaign promise of the National Democratic Congress (NDC).
Minister Confirms Tax Removal
George Opare Addo, Minister of Youth Development and Empowerment, reassured the public that the government remains committed to removing the betting tax and other so-called “nuisance taxes”.
He emphasized that the NDC administration intends to ease the financial burden on bettors while staying true to its pledges.
Finance Minister Dr. Cassiel Ato Forson is actively working to implement this tax relief as part of broader fiscal reforms.
Background on Ghana’s Betting Tax
- Introduced in August 2023, the 10% withholding tax on betting, gaming, and lottery winnings was deducted automatically at the point of payout.
- Exemptions applied when a game was canceled, and the player’s stake was refunded, or if the winnings did not exceed the original stake.
- The Ghana Revenue Authority (GRA) justified the tax as a means to boost domestic revenue, citing Ghana’s low tax-to-GDP ratio in the region.
- Betting operators were required to update their systems to track transactions, ensuring tax compliance.
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IMF Bailout and Fiscal Reforms
Ghana is currently under a three-year International Monetary Fund (IMF) bailout programme, aimed at stabilizing the economy following financial struggles.
As part of the recovery plan, the government initially focused on broadening the tax base and strengthening revenue collection.
However, growing public discontent over taxation policies, including the betting tax, has led policymakers to reassess their fiscal strategy.
The finance minister is reportedly engaging with the IMF to negotiate the removal of these unpopular levies.
Impact on the Betting Industry
The removal of the betting tax is expected to:
- Boost participation in the betting and gaming sector.
- Reduce compliance pressures on operators, who previously faced strict monitoring from the GRA.
- Encourage more flexible tax policies for the digital economy.
While Ghana’s government remains focused on revenue generation, this move signals a shift towards balancing economic recovery with public sentiment.
The final details of the 2025 budget, including alternative revenue strategies, are expected to be unveiled later this year.
