CSBO Urges Gov’t to Remove Taxes On Lottery, Betting
…In 2023 Budget Review
The convener of the Coalition of Small Business Owners (CSBO), Mr. Justice Ayeh Donkor, is calling on the Akufo-Addo-led government to either remove or review what he terms the “Tormenting Taxes” that it introduced as part of the conditions to secure the $3 billion IMF deal.
The existing tax policies and the tax structure, under the current government, are undermining the growth, performance and the revenues of private sector-led businesses.
Mr. Ayeh Donkor, who was speaking in an interview with some media men in Accra yesterday, said government should not be allowed to use taxes to destroy private businesses to result in hiking the unemployment rate in the country.
According to him, in support of the position of the Ghana National Chamber of Commerce and Industry (GNCCI), the government should consider the introduction of tax reliefs in the upcoming 2023 Mid-Year Budget Review, as a means of cushioning the suffering and struggling businesses in the country.
Importantly, he argues that the Ministry of Finance should remove the “unnecessary” 20% and 10% taxes imposed on the revenue of lottery marketing/sports betting companies and winnings respectively.
Parliament of Ghana on March 31, 2023, passed the Income Tax(Amendment) Bill and President Akufo-Addo assented to it into law. Among other things, the new income tax law re-introduced a 10% tax on lottery winnings after it was successfully removed in 2017, and a new unacceptable 20% tax on the revenue of Lottery/Sports Betting Companies. This is a very serious additional burden on the already over-taxed Private Companies in Ghana.
He noted that threat by the Ghana Revenue Authority(GRA) to close down all lottery/sports betting companies who fail to comply with the payment of the 20% and 10% taxes on lottery and sports betting is completely empty, which shall be faced with serious resistance and demonstrations against the government.