Ghana’s Parliament has officially approved the repeal of the controversial Betting Tax, along with levies on gaming, lotteries, and the 1.5% withholding tax on unprocessed gold. This move follows the passage of the Income Tax (Amendment) Bill, 2025, on Wednesday, March 26, 2025.
The Betting Tax, initially introduced as a 10% levy on gross winnings, was aimed at regulating gambling and increasing government revenue. However, it faced intense opposition from bettors, gaming operators, and the general public, who argued that it placed an undue financial burden on them. Many industry players also claimed that the tax discouraged betting activities and forced some operators to move their businesses to unregulated platforms, reducing the government’s ability to monitor and tax the sector effectively.
NDC’s Commitment to Abolishing ‘Nuisance Taxes’
During the 2024 election campaign, the National Democratic Congress (NDC) promised to abolish what it termed as “nuisance taxes.” The Betting Tax was a major part of this commitment. Upon assuming office, Finance Minister Dr. Cassiel Ato Forson reaffirmed the government’s stance, announcing the tax’s removal in the 2025 budget statement. Parliament has now approved this decision, marking a significant shift in Ghana’s tax policy.
The NDC’s campaign pledge resonated with a large section of the youth, who make up a significant portion of the betting community. Many young people had expressed frustration over the tax, arguing that it disproportionately affected them while doing little to address economic hardships. The government’s decision to scrap the tax has been widely seen as a move to fulfill electoral promises and build goodwill among its supporters.
In addition to scrapping the Betting Tax, Parliament has also passed the Electronic Transaction Levy (E-Levy) Repeal Bill, 2025, effectively abolishing the controversial tax on digital transactions.
The Downfall of the E-Levy
The E-Levy, introduced on March 29, 2022, by the previous government, placed a tax on electronic transactions, including mobile money transfers and online payments. It was designed to generate revenue for national development but failed to meet projected financial targets. The levy faced massive opposition from businesses and the public, who viewed it as an additional financial strain during a period of economic hardship.
Despite initial government assurances that the levy would generate substantial revenue, its implementation led to a decline in mobile money transactions, as many Ghanaians opted for alternative ways to transfer funds. Some individuals and businesses reverted to cash transactions to avoid the levy, reducing the expected revenue from the policy. Critics of the tax argued that it was poorly designed and did not consider the financial behaviors of Ghanaians, leading to its failure.
Finance Minister Dr. Forson, in his budget presentation on Tuesday, March 11, 2025, emphasized the government’s commitment to eliminating burdensome taxes. He assured the public that removing the E-Levy and other taxes, such as the Emissions Tax and the COVID-19 Levy, was part of a broader strategy to streamline the tax system and stimulate economic growth.
Background of the Betting Tax
The Ghana Revenue Authority (GRA) had announced the implementation of a 10% withholding tax on lotto, betting, and gaming winnings in December 2023, under the Income Tax (Amendment) Act, 2023 (Act 1094). The tax officially took effect on January 1, 2024, after a six-month extension.
Despite warnings from the GRA that non-compliance would attract sanctions under Section 78 of the Revenue Administration Act, 2016 (Act 915), the tax remained deeply unpopular. Many industry stakeholders, including gaming operators and punters, argued that it discouraged participation in the sector and threatened jobs within the gaming industry. Calls for its removal grew louder, leading to its eventual repeal.
Public Reaction and Economic Impact
The repeal of these taxes has been met with widespread approval, particularly among young people and small businesses that were heavily affected by the levies. Many citizens believe that abolishing the Betting Tax and E-Levy will relieve financial pressure and encourage greater participation in the digital and gaming sectors.
Betting companies have also welcomed the repeal, noting that it will restore confidence in the industry and allow them to operate without excessive financial burdens. Some operators had previously expressed concerns that the Betting Tax would drive punters away, leading to reduced business activity. With the tax now scrapped, they expect a resurgence in participation, which could, in turn, boost employment within the industry.
Economists predict that removing these taxes could lead to an increase in digital transactions and gaming activities, ultimately boosting related industries and creating new business opportunities. The absence of the E-Levy is expected to encourage more digital transactions, strengthening Ghana’s push towards a cashless economy. Financial analysts argue that a thriving digital economy will provide more long-term benefits than the short-term revenue the E-Levy was expected to generate.
However, some experts have raised concerns about how the government plans to compensate for the revenue shortfall caused by these tax cuts. The Betting Tax and E-Levy were expected to generate significant income for the state, and their removal means the government will need to identify alternative revenue sources. Some have suggested improving tax compliance, expanding the tax base, and strengthening revenue collection measures to make up for the lost income.
Next Steps
With Parliament’s approval secured, the bills will now be sent to President John Mahama for assent. Once signed into law, the repeals will take effect, officially eliminating these levies from Ghana’s tax system.
The government has assured Ghanaians that it remains committed to fiscal discipline while ensuring that taxation policies do not place undue burdens on citizens. Going forward, policymakers are expected to introduce alternative strategies to generate revenue without stifling economic growth.
As the country moves towards a new tax framework, stakeholders will be closely watching how the government navigates the balance between revenue generation and economic relief. The repeal of the Betting Tax and E-Levy marks a significant policy shift, but its long-term impact on Ghana’s economy remains to be seen.
