Finance Minister-designate, Dr. Cassiel Ato Forson has pledged to abolish the contentious betting tax if confirmed as Minister.
Appearing before Parliament’s Appointments Committee on Monday, January 13, 2025, Dr. Forson described the tax as ineffective and questioned its ability to meet the government’s objectives.
During his vetting, Dr. Forson recalled a statement by former Information Minister Kojo Oppong Nkrumah, who likened the tax to a “sin tax” aimed at deterring youth engagement in betting. Forson criticized this approach, emphasizing that taxation is not a suitable method for discouraging betting and arguing that a thorough evaluation of elasticities should have been conducted prior to implementing the policy.
“If the government’s intention was to stop betting due to its adverse effects, the best option is to ban it, not to introduce a tax,” Dr. Forson said. He maintained that the betting tax had failed to achieve its intended purpose and vowed to abolish it in his first budget if confirmed as Finance Minister.
The betting tax, introduced under the Income Tax (Amendment) Act, 2023, has faced widespread criticism since its implementation in January 2024. The Ghana Revenue Authority (GRA) began enforcing a 10% withholding tax on gross winnings, despite objections from patrons, operators, and the National Lottery Authority. Dr. Forson’s promise to eliminate the tax has sparked a renewed debate on its future.
