The former Director-General of the National Lottery Authority (NLA) and the Member of Parliament for Akuapem North, Sammy Awuku, has welcomed the government’s decision to rescind the controversial betting tax. Having been a persistent opponent of the tax during the previous administration, Mr Awuku described it as a misguided policy that lacked efficacy, failing to generate the intended positive impact in numerous regions.

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Speaking on Daily Guide Network (DGN) he lauded the government’s shift in approach, calling for more strategic and forward-thinking measures to regulate the betting sector effectively.

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“I’m excited that the betting tax is going to be scrapped, I’ve been consistent about it, even during the NPP era, and I said it is something that personally has not worked in many of the jurisdictions anytime you have introduced taxes on betting,” he added. Mr Awuku highlighted his reservations, detailing how the tax had detrimental effects, particularly on government-run bodies like the National Lottery Authority (NLA).

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He argued that instead of fostering growth and operational efficiency, the tax burden discouraged innovation and weakened the performance of these organizations, limiting their capacity to make a significant impact on the nation’s economic progress. “Lottery was part of the betting tax.

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The National Lottery Authority, for instance, is owned by the government, and apart from the things that they do, at the end of the day, they must also contribute to the national kitty,” he explained. He underscored the troubling implications of the tax, highlighting that it inadvertently gave an edge to illegal betting operators by making them more attractive to gamblers.

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“If the government is taxing itself, then what will happen is that the underground operators that we call the illegal operators will become emboldened. “If you play with the government, you attract a 10% tax on what you win. But if you play with the illegals, you get your full money. So, I told them that, for me, it was counterproductive,” he added.

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Awuku's critique extended to what he saw as contradictions within the ruling National Democratic Congress (NDC) administration. He highlighted that the Finance Minister-designate had not only supported the removal of the betting tax but also proposed a blanket ban on betting and lottery operations. This, according to Awuku, signaled an inconsistency in the government's approach and raised doubts about its overall policy direction on the issue.

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“The difficulty with the NDC position is that earlier the Finance Minister-designate, in time past, had said that it should be banned—not just the tax being scrapped,” he said.

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