According to reports widely received so far, players of lottery products and sports betting games across Ghana are seriously unhappy with Akufo-Addo’s Government and Ken Ofori-Atta for attempting to impose 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 are of the views that the Government is being insensitive and there is a widely claimed that the New Patriotic Party whenever in power always makes attempts to destroy the lottery business with laws and useless taxes.
Most Players and LMCS opinionated that the new 20% and 10% respective taxes on gross revenue of lottery companies and the staking public will seriously undermines the sales, revenue, profits and growth of 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, a lot of Lotto Marketing Companies are dying out because of huge debts as a result of higher wins by the staking public coupled with huge amounts of money paid to the National Lottery Authority as a license fees.
The inability of the National Lottery Authority too to pay winning tickets to the staking public promptly as well as the 20% commissions to the Lotto Marketing Companies have already negatively affected the lottery business leading to a decline in sales and revenue.
The Ministry of Finance should have a second look at the 20% and 10% taxes on the gross sales of Lotto Marketing and Betting Companies, and winnings respectively.
First and foremost, the Ministry of Finance should with immediate effect 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 National Lottery Authority, Private Sector Lotto Operators, Lotto Marketing Companies, Sports Betting Companies, and all other relevant stakeholders to reach consensus on the best way forward to address the concerns of the lottery industry.
The Country Ghana is becoming too difficult for private businesses and investors to survive due to the nuisance taxes been introduced by the Akufo-Addo’s Government.
Unemployment and collapsing of businesses are on the rise too much and this phenomenon is not good for the image of the New Patriotic Party(NPP) as majority of players of lottery products and sports betting games are threatening to vote out the New Patriotic Party in the 2024 general elections if Ken Ofori-Atta and the Ghana Revenue Authority goes ahead with the collection of the 20% tax on the gross sales/Revenue of Lotto Marketing Companies and the 10% Withholding Tax on Winnings.
