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 betting winnings. It also abolishes taxes on gaming and games of chance.

Additionally, the bill eliminates the 1.5% withholding tax on unprocessed gold from small-scale miners. Dr. Cassiel Ato Forson, the Minister of Finance, explained the bill's purpose in Parliament.

He defined a lottery as a scheme where rights are sold for prizes. This includes betting, gaming, and any game of chance. The bill aims to remove withholding taxes not just on betting but also on other forms of gaming.

Dr. Forson noted that the NDC manifesto promised to eliminate this betting tax. He emphasized that this bill does more than just remove taxes on betting winnings.

Regarding unprocessed gold, he believes removing the tax will help establish a Gold Board. This board would attract small-scale miners and reduce gold smuggling rates.

The high rate of gold smuggling 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 sales.

During the debate, Majority Leader Mahama Ayariga said 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 abolitions as "much ado about nothing." He reminded Parliament that in 2017, previous taxes were abolished by the Akufo-Addo government.

Afenyo-Markin urged more action to improve living conditions for citizens.