The National Democratic Congress (NDC) has vehemently opposed the newly introduced 10% tax on betting winnings by the government.
The NDC’s National Communications Officer, Sammy Gyamfi, took to social media to clarify the party’s stance and address misinterpretations of his earlier comments made during the 2020 election campaign.
Mr. Gyamfi, drawing attention to the attempts by certain New Patriotic Party (NPP) social media activists to twist his previous statements, emphasized that he had discussed the possibility of imposing a tax on sports betting “as it’s done in the UK” during an interview regarding the NDC’s plans to fund the Sports Development Fund promised in their 2020 manifesto.
However, he underscored a crucial distinction between Ghana’s new approach and the UK’s taxation model. In the UK, bet winnings are not taxed; instead, betting companies bear the brunt of taxation. The recent imposition of a 10% tax on bet winnings in Ghana contradicts the UK model and the position Gyamfi had advocated during the 2020 campaign.
Mr. Gyamfi’s statement outlined several key points:
1. Sports Betting as a Necessity: The statement acknowledged that while sports betting might be undesirable, it has become a necessary means of survival for Ghanaian youth facing joblessness and economic hardships caused by the current government’s policies.
2. Insensitivity of Taxation: The imposition of a tax on bet winnings amid the country’s high inflation rate (43.1%) and rising unemployment was criticized as insensitive and unacceptable.
3. Focus on Multinational Companies: The NDC suggested that if the government seeks to raise tax revenue from betting, it should target multinational or foreign betting companies rather than burdening struggling Ghanaian youth.
4. Contradiction of Social Contract: The NPP government’s introduction of multiple taxes, including the new betting tax, was seen as a betrayal of their promise to reduce the tax burden on Ghanaians and stimulate production.
5. Impact on Unemployed Youth: The statement acknowledged that sports betting has become a refuge for the unemployed Ghanaian youth who have been adversely affected by the government’s economic mismanagement.
In light of these arguments, the NDC called for the immediate removal of the newly introduced 10% tax on betting winnings, citing its adverse impact on struggling individuals and its contrast with the NPP’s original promises.
Read the entire post below;
My attention has been drawn to desperate attempts by some NPP social media activists to put a spin on a comment I made about sports betting in the run up to the 2020 elections.In response to a question on how the NDC intends to fund the Sports Development Fund we promised in our 2020 manifesto, I indicated in the said interview, that that the NDC will consider imposing a tax on sports betting “as it’s done in the UK”.The question every objective mind ought to ask therefore, is what pertains in the UK relative to taxation on sports betting?The answer is simple!In the UK, bet winnings are not taxed. Rather, bet companies are heavily taxed. See https://www.newbettingsites.co/…/how-much-tax-do…/This is the example I cited and indicated that a future NDC government will consider post 2020. The new 10% tax on bet winnings that the Akufo-Addo/Bawumia/NPP government has introduced is the direct opposite of what pertains in the UK and the position I canvassed in 2020. Don’t be misled!For the sake of clarity and emphasis, the NDC is vehemently opposed to the 10% tax that has been imposed by the Akufo-Addo/Bawumia/NPP government on bet winnings;1. Sports betting although undesirable, has become a necessary evil given the state of hopelessness, joblessness and excruciating hardships that Ghanaian youths have been plunged into by the insensitive and reckless Akufo-Addo/Bawumia/NPP government.2. Taxing bet winnings under the current excruciating economic conditions Ghanaians are facing, particularly, the high rate of inflation of 43.1% and the highest unemployment rate among others, is insensitive and totally unacceptable.3. Government should be innovative in its bid to increase tax revenue and stop this lazy approach to taxation. If government is minded to raise tax revenue from betting, its focus should be on taxing multinational/foreign bet companies as it pertains in the UK and other jurisdictions and not poor Ghanaian youths who have been compelled by the harsh economic conditions in the country *to seek refuge in sports betting for their very survival.*4. More importantly, the new 10% tax on bet winnings introduced by the NPP contravenes the government’s social contract with Ghanaians. That social contract is to the effect that; “taxation is a lazy approach to governance” and that an NPP government will “reduce the tax burden on Ghanaians” and move the country from “taxation to production”.Contrary to this promise, the current NPP government has introduced over 25 tax handles since they took office in 2017- a clear betrayal of the trust of Ghanaians. These taxes have conspired to make life unbearable for the vast majority of Ghanaians, particularly the youths who can’t find jobs.The NDC will not and cannot lend its support to the double-standards the NPP continuous to display relative to taxation, particularly at this time of unprecedented hardships.5. Undoubtedly, Sports Betting has become a refuge for the millions of Ghanaian unemployed youths who have been compelled by the economic mismanagement of the NPP to depend on betting for survival. Imposing a 10% tax on bet winnings is therefore cruel. Given the difficult times we find ourselves in, the NDC fully supports calls for the immediate scrapping of the newly introduced 10% tax on bet winnings.*This is the official position of the great NDC on the newly-introduced 10% tax on bet winnings.Sammy Gyamfi Esq.National Communications OfficerNational Democratic Congress
Source: GraphicOnline
