The Ghana Revenue Authority (GRA) is anticipating a substantial boost to its revenue, aiming to collect around GH¢400 million from a novel gaming tax initiative. This new taxation strategy entails a 10 percent levy on winnings from bets and lotteries. According to Spio Abedu, a member of the Gaming Committee at the GRA, this tax will be deducted at the source of the earnings. Abedu clarified that the gaming operators would serve as withholding agents, as mandated by the Commissioner General’s legal provisions. These agents are expected to withhold and transfer the tax amount to the Commissioner General by the 15th of every month. The estimated amount, which had hovered around GH¢400 million since 2021, could potentially increase by incorporating gross gains from the gaming entities.
Effective August 15, 2023, the Ghana Revenue Authority (GRA) will begin implementing a withholding tax of 10% on all gross gaming winnings. This tax will be levied on profits accumulated after each win, and the pre-existing 15% Value Added Tax (VAT) applied to each stake will no longer be in effect. This policy shift aligns with an amendment made to the Income Tax Act 2023 (No.2), specifically Act 1094.
Edward Gyamerah, the Commissioner for the Domestic Tax Revenue Division at GRA, emphasized the seriousness of adhering to the new policy during a media interaction. He cautioned that gaming companies that disregard the policy would face sanctions, which could even involve the revocation of their licenses. This announcement underscores the GRA’s commitment to maximizing revenue collection and ensuring compliance within the gaming industry.
Source:citinewsroom