Ato Forson: Finance Minister-Designate pledges to abolish betting tax in his first budget
Dr Cassiel Ato Forson, Ghana’s Finance Minister-designate, has pledged to abolish the controversial betting tax should he be confirmed as Minister.
Appearing before the Appointments Committee of Parliament on Monday, January 13, 2025, Dr Forson criticised the tax as ineffective and questioned its ability to address the government’s stated objectives.
During his vetting, Dr Forson recalled a previous debate on the issue, referencing comments made by the then-Minister for Information, Kojo Oppong Nkrumah.
“At the time, the Minister for Information, I’m sure, had the responsibility to sell a government policy on betting. He said that betting tax is being implemented because ‘it is destroying our youth’ and that the government is introducing this betting tax ‘to deter them, equivalent to sin tax, so that they will not be staking the bet,’” Dr Forson recounted.
Questioning the policy’s effectiveness
Dr Forson expressed doubts about the effectiveness of the tax in curbing youth engagement in betting. He explained that a thorough evaluation of elasticities—measuring how changes in taxation influence behaviour—should have been conducted before implementing the policy.
“If you want to introduce a tax, you have to first look at the elasticities,”** he stated. “This means assessing whether imposing such a tax would actually deter individuals or the population from engaging in betting.”
He further argued that taxation was not the best approach if the government’s objective was to discourage betting. “I doubted that imposing the tax would prevent people from staking bets. If the government’s intention was to stop betting due to its adverse effects, ‘the best option is to ban it and not to introduce a tax,’” he emphasised.
Call for abolishment
Reflecting on the policy’s impact since its implementation, Dr Forson maintained that the tax had failed to achieve its purpose. “Here we are today, and I have been vindicated. Has the tax solved the problem as intended by the government? I insist that the tax must be abolished,” he declared.
He concluded with a firm promise: “As Minister of Finance, in my first budget, I will abolish the betting tax.”**
Background of Betting Tax
In a public notice released on Thursday, December 28, 2023, the Ghana Revenue Authority (GRA) informed the public, particularly lotto patrons and operators, about the commencement of the implementation of a 10% withholding tax on the gross winnings from all lotteries, including lotto, betting, gaming, and other games of chance.
The Income Tax (Amendment) Act, 2023 (Act 1094) introduced this Withholding Tax, which has been in effect since its implementation.
However, the National Lottery Authority (NLA) and Private Lotto Operators (PLOS) were granted a six-month extension to prepare and implement the tax. This extension is set to expire at the end of December 2023.
Therefore, the GRA has mandated the NLA and PLOs to commence the implementation of the 10 per cent Withholding Tax on Lotto Gross Winnings from January 1, 2024.
The GRA emphasized that compliance with the tax law is mandatory, and failure to do so is considered an offence under Section 78 of the Revenue Administration Act, 2016 (Act 915). Sanctions will be applied to operators who do not adhere to the stipulated tax regulations.
Patrons, players, punters, operators, and tax consultants were urged to take note of this directive.