Parliament approves repeal of Betting Tax

Ghana’s Parliament has approved the repeal of the controversial Betting Tax, along with taxes on gaming and lotteries, as well as the 1.5 per cent withholding tax on unprocessed gold. 

This decision came following the passage of the Income Tax (Amendment) Bill, 2025, on Wednesday, March 26, 2025.

The Betting Tax, introduced as a 10 per cent levy on gross winnings, was initially implemented to regulate gambling and increase government revenue. 

However, its enforcement was met with significant opposition from bettors and gaming operators, who argued that it was an unfair burden.

During the 2024 election campaign, the National Democratic Congress (NDC) had pledged to abolish the tax, branding it a “nuisance tax”. In keeping with this promise, Finance Minister Dr Cassiel Ato Forson announced its removal in the 2025 budget statement, a proposal that has now been endorsed by Parliament.

In addition to scrapping the Betting Tax, Parliament has also approved the Electronic Transaction Levy (E-Levy) Repeal Bill, 2025, effectively abolishing the unpopular digital tax.

The E-Levy, introduced on March 29, 2022, by the previous government, was a tax on electronic transactions, including mobile money transfers and online payments. It was intended to generate revenue for national development. 

However, the policy failed to yield the expected financial returns and faced strong opposition from citizens and businesses.

Dr Forson, in his budget presentation on Tuesday, March 11, reaffirmed the government’s commitment to eliminating “burdensome taxes”, including the Emissions Tax and the COVID-19 Levy, as part of a broader strategy to streamline the tax system and boost economic activity.

Background of the Betting Tax

The Ghana Revenue Authority (GRA) had announced the implementation of the 10% withholding tax on lotto, betting, and gaming winnings in December 2023, under the Income Tax (Amendment) Act, 2023 (Act 1094). After a six-month extension, the tax officially took effect on January 1, 2024.

Despite warnings from the GRA that non-compliance would attract sanctions under Section 78 of the Revenue Administration Act, 2016 (Act 915), the tax remained deeply unpopular, with many stakeholders calling for its removal.

With the approval of the repeal bills, the tax burden on bettors, digital transactions, and small-scale gold traders is expected to ease, a move widely welcomed by the public.

The bills will now be sent to President John Mahama for assent.