Parliament abolishes 10% withholding tax on bet winnings, 1.5% withholding tax on unprocessed gold - Ghana Business News

Parliament approved the Income Tax Amendment Bill 2025 on Wednesday. This bill removes the 10% withholding tax on bet winnings. It also eliminates taxes on gaming and games of chance.

Additionally, the bill abolishes the 1.5% withholding tax on unprocessed gold from small-scale miners. Dr. Cassiel Ato Forson, the Minister of Finance, clarified the bill's purpose in Parliament. He defined lottery as a scheme where rights are sold for prize draws.

The bill not only removes taxes on betting winnings but also on gaming activities. The Finance Minister noted that the NDC manifesto promised to eliminate this betting tax. He emphasized that this bill does more than just remove betting taxes.

Regarding unprocessed gold, Dr. Forson believes abolishing the tax will help establish a Gold Board. This board aims to attract small-scale miners and reduce gold smuggling rates. The current smuggling issue is linked to the 1.5% withholding tax.

Removing this tax could increase foreign currency inflow for Ghana's development. The government expects to generate GH¢268.75 million from betting winnings and GH¢145 million from unprocessed gold.

During discussions, Majority Leader Mahama Ayariga stated that removing these taxes would boost small-scale miners' incomes. It would also facilitate establishing the Gold Board.

Minority Leader Alexander Afenyo-Markin criticized the tax removals as "much ado about nothing." He recalled that in 2017, the Akufo-Addo government abolished 15 "nuisance taxes" from the previous administration. He urged more action to improve living conditions for citizens.

Source: GNA