The Ghana Revenue Authority (GRA) has notified sporting and lottery companies of the 10% tax on all winnings from sports betting and lotteries set to kick in effective August 15.
This forms part of the government’s efforts to expand the tax base and increase domestic revenue.
According to the authority, the previous 15% Value Added Tax (VAT) rate on each stake will no longer be applied. Instead, withholding tax will be imposed on earnings that are accrued after each win.
The GRA further explained that the new policy is in line with an amendment to the Income Tax Act 2023 (No.2), Act 1094.
A Commissioner of the Domestic Tax Revenue Division at the GRA, Edward Gyamerah said there would be a punitive measure against any gaming company that disregard the new policy.
He stated that companies that flout the law would be subjected to fines, including having their licenses revoked.
“From August 15, we expect that when you are making the payments, you will withhold 10 percent to the Ghana Revenue Authority (GRA). As you have been appointed as withholding agents, the obligation is on you to withhold”, he said.
The GRA also announced amendment to the Excise Duty Act, which has expanded the scope of excise duty to cover all fruit juices and also provide a change in rates for some products.
It first came to light when Parliament passed three new bills on March 2023.
They were the Excise Duty Amendment Bill 2022, the Growth and Sustainability Levy Bill, 2022, and the Income Tax Amendment Bill 2022.
Five months down the line, the GRA is alerting individuals who partake in these gaming activities to be conscious of this new policy and do as expected.
Meanwhile, some Ghanaian sports fans are worried about the decision and its potential impact on their earnings.
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