Parliament passes bill to remove betting tax

Parliament has passed a bill to repeal the 10% withholding tax on gaming and lotteries, pending assent by President John Dramani Mahama.

The development on Wednesday, March 26, follows the passage of a bill repealing the Electronic Transaction Levy (E-Levy).

The 2025 budget statement outlined the removal of several taxes, including the betting tax, E-Levy, emissions tax, VAT on motor vehicle insurance policies, and the 1.5% withholding tax on winnings from unprocessed gold by small-scale miners.

Presenting the budget to Parliament on Tuesday, March 11, Finance Minister Dr. Cassiel Ato Forson said the move aims to ease the financial burden on Ghanaian households and businesses.

“We will abolish the 10% withholding tax on winnings from lotteries, otherwise known as the ‘betting tax’; we will abolish the Electronic Transfer Levy (E-Levy) of 1%; we will abolish the emissions levy on industries and vehicles; we will abolish the VAT on motor vehicle insurance policies; and we will abolish the 1.5% withholding tax on winnings from unprocessed gold by small-scale miners,” he stated.

He further addressed concerns about how the resulting revenue gaps would be filled, explaining that reducing the current tax refund ceiling from 6% to 4% would help cover the shortfall.

“Mr. Speaker, by reducing the ceiling on the tax refund from 6% to 4%, we will save GH¢3.8 billion. This amount is enough to close the revenue shortfall from the removal of the E-Levy, which amounts to GH¢1.9 billion, and the betting tax, which accounts for GH¢180 million.

“Mr. Speaker, we have already saved GH¢3.8 billion for 2025 alone from just one source, and this is enough to close the gap created by the taxes we have removed,” he assured.