Betting tax is counterproductive – Sammi Awuku [Video]

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New Patriotic Party (NPP) Member of Parliament for Akuapem North, Sammi Awuku, has expressed satisfaction with the decision of the Mahama-led administration to scrap the betting tax.

The former Director-General of the National Lottery Authority (NLA) stated that the tax was counterproductive and failed to achieve the desired results.

Mr. Awuku made these remarks in an interview with Adom News’ Parliamentary Correspondent, Ohene Amponsah.

“I have been consistent with my position under both the Akufo-Addo government and now Mahama’s that the betting and lottery tax is counterproductive and will not help the nation. It is a voluntary tax,” he stated.

In this regard, Mr. Awuku suggested that the government should engage with relevant stakeholders in the gaming industry and set specific targets for them. He emphasized that the government should avoid passing the tax burden onto players, as this would make illegal betting operators more attractive to bettors.

“Government must sit with the stakeholders and set targets for them to pay, rather than passing it on to the player. The tax will make illegal betting operators more attractive to players,” he said.

He further urged the government to incentivize companies that comply with the rules of the game. Additionally, he called for a review of Ghana’s laws, noting that illegal operators arrested and arraigned in court must face stringent punishments as a deterrent.

“It is considered a financial crime in some jurisdictions, so punishments must not be based on the judge’s discretion,” he added.

In August 2023, the Ghana Revenue Authority (GRA) notified sporting and lottery companies of a 10% tax on all winnings from sports betting and lotteries. This generated significant controversy, with many blaming NLA for initiating the tax.

However, Mr. Awuku revealed that during his time at NLA, the outfit was not consulted before the tax was implemented.

Listen to Mr Awuku in the video above:

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