The National Democratic Congress (NDC) Parliamentary Caucus has proposed a Private Member’s bill to amend the Income Tax Act of 2023, aiming to repeal the 10 percent withholding tax levied on lottery winnings, including those from betting and gaming activities.
The NDC caucus argues that this tax repeal is essential to provide financial relief to Ghanaians, many of whom are dealing with the fallout from the government’s Domestic Debt Exchange Programme (DDEP).
The DDEP, which sought to restructure the Ghana’s debt to stabilise the economy, has had far-reaching consequences, affecting pensions, investments, and the financial stability of numerous citizens.
In this climate, with high unemployment rates and widespread economic hardship, the NDC caucus believes that any additional financial burdens on citizens are inappropriate and potentially damaging.
In an effort to offset the Ghana’s fiscal challenges, the government initially implemented this 10 percent tax on lottery and betting winnings with an objective to generate approximately GH¢400 million in revenue.
This policy was part of a broader tax strategy intended to enhance government revenues and close budget gaps, following the economic shocks experienced in recent years.
However, the NDC caucus contends that the tax on game winnings is both ineffective as a revenue-generation measure and regressive, disproportionately impacting younger Ghanaians, many of whom are unemployed or underemployed and turn to gaming and betting as alternative means of income.
The proposed amendment seeks to mitigate the financial burden on these individuals, especially in the context of a harsh economic climate.
According to NDC MPs, many Ghanaians engage in lottery and gaming with the hope of supplementing their incomes amid high inflation and escalating living costs.
