The Minister for Finance, Dr. Cassiel Ato Forson, has announced that the government will abolish the 10% withholding tax on lottery winnings, popularly known as the "Betting Tax," as part of measures outlined in the 2025 Budget Statement and Economic Policy.
Speaking on the floor of Parliament on Tuesday, Dr. Forson explained that the removal of the betting tax forms part of the government's broader strategy to ease the financial burden on citizens and enhance domestic revenue mobilization.
"We have programmed the removal of some nuisance taxes in line with our manifesto promise. This includes the abolition of the 10% withholding tax on lottery winnings, which has been a source of concern for many Ghanaians," Dr. Forson stated.
The Finance Minister noted that the removal of the betting tax is expected to improve disposable incomes for households and promote compliance within the gaming industry.
He emphasized that despite the commitment under the International Monetary Fund (IMF)-supported programme to increase non-oil tax revenue by 0.6 percentage points of GDP annually, the government remains focused on relieving citizens of undue tax pressures.
Dr. Forson highlighted that the government has identified alternative sources to offset the revenue shortfall from the removal of the betting tax and other levies.
"By reducing the current tax refund ceiling from 6% to 4% of total revenue, we will save GH¢3.8 billion in 2025 alone — enough to cover the GH¢180 million shortfall from the removal of the betting tax," he explained.
In addition to the betting tax, the government also announced the abolition of the 1% Electronic Transfer Levy (E-Levy), the Emission Levy on industries and vehicles, the VAT on motor vehicle insurance policies, and the 1.5% withholding tax on unprocessed gold winnings by small-scale miners.
The Finance Minister assured Parliament that these measures will not compromise Ghana's fiscal targets but will instead strengthen economic resilience and support business growth.
"We are committed to protecting the livelihoods of Ghanaians while ensuring economic stability and sustainable growth," Dr. Forson added.
The proposed measures are part of the government's strategy to align with its IMF-supported economic recovery programme while stimulating business activity and boosting consumer confidence.
Story by: Joshua Kwabena Smith
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