GHANA Revenue Authority (GRA) has served notice to lotto patrons and operators that a 10% withholding tax on all gross winnings will take effect from January 2024.
In August, GRA announced the implementation of a 10% withholding tax on all betting, games and lottery wins.
This followed the government’s decision to amend the Tax Act, therefore introducing withholding tax on winnings from sports betting and lottery.
A statement from the Commissioner-General of the GRA said the National Lottery Authority (NLA) and Private Lotto Operators (PLOs) were granted a six-month extension despite the 10% withholding tax being introduced, with that extension set to come to an end in December.
“The Ghana Revenue Authority wishes to inform the general public, especially patrons of Lotto that the Income Tax (Amendment) Act, 2023 (Act 1094), introduced a 10% Withholding Tax on the gross winnings from all lottery i.e. lotto, betting, gaming and other games of chance,” the GRA said.
“Although the implementation has commenced, the National Lottery Authority (NLA) and Private Lotto Operators (PLOs) were granted a six (6) month extension to enable the NLA/PLOs to prepare and implement the 10% withholding tax on lotto gross winnings.”
The revenue authority added: “This extension expires in December 2023 and therefore the NLA and PLOs are required to commence the implementation of the withholding tax on lotto gross winnings effective January 2024.
“The general public, particularly patrons /players punters, operators and tax consultants must take note of this directive. Operators are also reminded that failure to comply with the tax law is an offence and attracts sanctions as prescribed in Section 78 of the Revenue Administration Act, 2016, (Act 915).”
Meanwhile, the lottery and betting industries in the former Gold Coast have seen tremendous growth in the last decade, luring many betting companies to set up shops all round the country.
In recent times, however, sports betting has often divided opinion among Ghanaians, with some quarters highlighting its negative effects on the youth, including addiction.
But the beliefs of others in the Blackstar of Africa, Ghana is the exact opposite, with some alluding to the fact that betting is legal and a legitimate way of making money, and therefore cannot be described as a bad practice when no laws are broken.
Eighteen-Eleven Media