In a move that has sparked debate across Ghana, Majority Leader Osei Kyei Mensah-Bonsu has lent his support to the Ghana Revenue Authority's (GRA) decision to implement a 10% withholding tax on all gross gaming winnings, effective August 15, 2023.
Speaking on Kumasi-based Angel FM, Mensah-Bonsu defended the controversial tax by asserting that betting and lottery activities do not promote hard work and instead encourage idleness.
The Suame MP didn't mince words, stating, "I don't believe in betting. I don't believe in luck. I believe in hard work and sweat to get money. Let's be serious. As for me, I'm against betting coming into the country. I don't support it because it doesn't encourage hard work."
He continued, "As an individual, I don't engage in the lottery because I don't believe in that. I don't believe in luck. Work hard so God will bless it."
Mensah-Bonsu's stance aligns with the GRA's recent amendment to the Income Tax Act 2023 (No.2), Act 1094, which enforces the withholding tax on gaming earnings.
The previous 15% Value Added Tax (VAT) on stakes will no longer apply; instead, the 10% withholding tax will be deducted from earnings after each win.
Edward Gyamerah, Commissioner of the Domestic Tax Revenue Division at the GRA, emphasized that gaming companies must comply with the new policy.
Companies found in violation could face hefty fines and potential license revocation.
"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," Gyamerah explained.
Critics have argued that the tax unfairly targets individuals who engage in gaming activities, while supporters contend that the move aligns with promoting a culture of hard work and financial responsibility.