The Ghana Revenue Authority (GRA) has warned that it will punish any lottery company or betting company that refuses to deduct a 10% withholding tax on winnings.
The GRA will begin implementing the withholding tax on August 15, 2023. The tax will be charged on profits accrued after each win.
The GRA says the new policy is in line with an amendment to the Income Tax Act 2023 (No.2), Act 1094.
Speaking to journalists in Accra, Commissioner of Domestic Tax Edward Appenteng Gyamerah said that lottery companies and betting companies must comply with the law.
“The obligation is on you to withhold and if you fail to do that, you can be assured that your licenses will be withdrawn. We are expecting GH¢1.2 billion, which is the expected revenue. This is the initial stage of this policy and going forward the expected revenue is very high. I’m sure after the first year, we will see the full potential, which is in the range of GH¢3 billion,” the Commissioner for the Domestic Tax Revenue Division at GRA, cautioned.
The new withholding tax on gaming winnings and excise duties on beverages are part of the GRA’s efforts to improve revenue mobilization in Ghana.
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source: CitiNewsRoom