Lotto and betting players have vehemently kicked against the imposition of nuisance taxes on lottery and betting games.
Reports widely received so far suggest that players of lottery products and sports betting games across Ghana are unhappy with the Akufo-Addo Government and Ken Ofori-Atta for attempting to impose a 20% Income tax on the “Gross Gaming Revenue” of lottery, betting and gaming companies as well as 10% Withholding Tax on winnings from lottery, betting and games of chance at the point of payout.
Most players and Lotto Marketing Companies believe the Government is being insensitive.
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There are even claims the New Patriotic Party (NPP) always attempts to destroy the lottery business with laws and useless nuisance taxes whenever it is in power
Most players and the LMCS opine that the new 20% and 10% taxes on the gross revenue of lottery companies and the staking public respectively will seriously undermine the sales, revenue, profits and growth of the lottery industry.
The 10% Withholding Tax on Winnings will prevent thousands of players from staking the lottery products both in the kiosks and online.
Already, many Lotto Marketing Companies are dying out because of huge debts due to higher wins by the staking public.
This is coupled with huge amounts of money paid to the National Lottery Authority (NLA) as license fees.
The inability of the NLA to pay winning tickets to the staking public promptly as well as the 20% commissions to the Lotto Marketing Companies have negatively affected the lottery business leading to a decline in sales and revenue.
The Ministry of Finance should take a second look at the 20% and 10% taxes on the gross sales of Lotto Marketing and Betting Companies, and winnings respectively.
The Ministry of Finance should, first and foremost, suspend the implementation of the Nuisance Taxes on the lottery companies and players of the staking public.
The Minister of Finance should rather have broader consultations with the NLA, Private Sector Lotto Operators, Lotto Marketing Companies, Sports Betting Companies and all other relevant stakeholders to reach a consensus on the best way forward to address the concerns of the lottery industry.
Ghana is becoming too difficult for private businesses and investors to survive due to the nuisance taxes being introduced by the Akufo-Addo Government.
Unemployment and the collapse of businesses are on the rise too much. This phenomenon is not suitable for the image of the NPP as the majority of players of lottery products and sports betting games are threatening to vote out the party in the 2024 general elections if Ken Ofori-Atta and the GRA go ahead with the collection of the 20% tax on the gross sales/Revenue of Lotto Marketing Companies and the 10% Withholding Tax on Winnings.
Source: Justice Ayeh Donkor, Freelance Journalist/Blogger
