Mahama Vows to Eliminate 10% Sports Betting Tax in Bid to Support Youth

John Dramani Mahama, the flagbearer of the National Democratic Congress (NDC), has pledged to abolish the 10% tax on sports betting if elected.

This tax was introduced by the current government under Nana Addo Dankwa Akufo-Addo in August 2023 and is applied to all betting, gaming, and lottery winnings at the payout point.

It was designed to boost domestic tax revenue and address the country’s economic challenges.

The tax has been met with significant backlash from the youth of Ghana, who argue that the tax is burdensome and affects their daily lives.

During the NDC’s Town Hall Conversation, Mahama was asked by a concerned citizen if his government would eliminate the tax.

The question highlighted the impact of the tax on individuals who rely on betting for supplementary income, noting that a withdrawal of 1,000 cedis results in a 100 cedis tax, which many find difficult to bear.

In response, Mahama assured the audience that his administration would abolish the betting tax.

He acknowledged the current government’s agreement with the International Monetary Fund (IMF) to implement the tax but promised that his government would seek alternative revenue sources to replace it.

The Ghana Revenue Authority’s Domestic Tax Revenue Division reported in October 2023 that the 10% withholding tax on betting and lottery winnings had generated GH¢15 million in revenue within a month.