Ghana Abandons Gambling Tax to Spur Economic Activity, Faces Revenue Concerns

Ghana has repealed a 10% tax on gambling winnings less than two years after its implementation, citing household financial strain and a broader economic strategy.

Introduced under former President Nana Akufo-Addo to bolster domestic revenue and regulate the sector, the tax was revoked by current President John Mahama, now serving his second non-consecutive term after leading from 2012 to 2017.

Finance Minister Dr. Cassiel Ato Forson argued the levy disproportionately burdened citizens, with over 70% of Ghanaians engaging in betting activities, according to a 2024 report. The repeal aims to increase disposable income and stimulate consumption amid economic challenges. Online platforms, favored for their accessibility and security features like cryptocurrency payments and inclave integration—a password storage system enabling global access—have driven gambling’s popularity.

While the move has drawn public approval, particularly after plans to raise the tax to 50% were discarded, critics warn of fiscal repercussions. The Institute of Economic Affairs (IEA) highlighted the tax’s role in generating GHS6.4 billion (approximately $483 million) annually, expressing concern over compounding revenue losses from recent tax cuts. Conversely, betting operators have welcomed the policy shift, rolling out marketing campaigns and bonuses to attract users.

Ghana’s reversal mirrors global debates on balancing revenue generation with economic relief. Nations like the UK and Kenya have similarly grappled with gambling taxes, often adjusting rates to address public welfare or market growth. While tax removal may spur short-term consumer spending, long-term fiscal stability hinges on diversifying revenue streams. Ghana’s gamble underscores the delicate interplay between economic stimulus and fiscal prudence in resource-constrained environments.

Source: newsghana.com.gh

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Szarlot

I am a fan of casino games especially roulette and blackjack. After that I analyze current events in the gambling industry.

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Szarlot

I am a fan of casino games especially roulette and blackjack. After that I analyze current events in the gambling industry.