Starting August 15 of this year, the Ghana Revenue Authority (GRA) will initiate a 10 percent withholding tax on the total winnings generated from betting, gaming, lotto, and various games of chance.

The rationale behind this decision, as explained by the Authority, stems from the recent approval of the Income Tax (Amendment No. 2, Act 2023 (Act 1094)), which introduces tax deductions on earnings from sports betting and gaming activities.

During an official press briefing held in Accra, Edward Gyambrah, the Commissioner of the Domestic Tax Revenue Division (DTRD), unveiled this development. The 10 percent tax deduction will be applicable across the spectrum, affecting private lotto operators, sports betting companies, casinos, route operators, remote interactive game operators, marketing promotions, and other similar games of chance.

Furthermore, as part of the changes, all participants in the lottery sector will be required to remit a 20 percent tax on their gross gaming revenue (GGR) when submitting their monthly returns.

It's important to note that certain segments, like casinos, route operators, and marketing promotion enterprises, have already been adhering to this policy since June 1, 2023. The implementation of the tax policy for sports betting and private lotto operations is set to commence on August 15, 2023.

According to Mr. Gyambrah, the GRA is hoping to raise about GH1.2 billion in the first year of implementing this policy, and in incremental amounts during the ensuing years.

“We are widening the tax net to include everyone in this developmental agenda,” the Commissioner said, adding: “Failure of industry players to abide by these rules will lead to sanctions and the withdrawal of operational licences.”.

The Ghana Revenue Authority (GRA) is actively pursuing various tax policy measures to enhance the generation of domestic revenue.

Notable initiatives encompass the introduction of Electronic VAT, Electronic Tax Clearance certificates, upfront payment protocols for imported goods, and the enforcement of excise tax stamps, among other strategies.

Additionally, the GRA is engaged in initiatives like the ongoing e-VAT monitoring initiative, along with activities such as test purchases and mystery shopping exercises, all designed to bolster and refine revenue mobilisation efforts.

In the current fiscal year, the GRA has established a revenue goal of GH106 billion. Among these targets, the Customs Division is tasked with gathering approximately GH28.5 billion.