Parliament abolishes 10% withholding tax on bet winnings, 1.5% withholding tax on unprocessed gold

Parliament on Wednesday officially approved the Income Tax Amendment Bill 2025, abolishing 10% withholding tax on bet winnings as well as tax on gaming and any game of chance.

The bill also abolished the 1.5% withholding tax on unprocessed gold from small-scale miners.

While clarifying the intent and purpose of the bill on the floor of Parliament, Dr Cassiel Ato Forson, the Minister of Finance, explained that the bill defined lottery as a Scheme where rights were sold to take part in a draw by lot for prize including betting, gaming and any game of chance.

 Therefore, the bill was not only removing withholding tax on bet winnings but also on gaming and game of chance.

“The NDC manifesto promised to remove betting tax which is a sub-component of the lottery tax,” the Finance Minister added.

“Mr Speaker, the bill is a three-in-one and should not be misconstrued as the tax only removing taxes on betting winnings, we have done more than that”.

On abolishing 1.5% withholding tax on unprocessed gold, Dr Forson was of the belief that it would enable the yet to be established Gold Board to attract small-scale miners to sell their gold to the Board and curb the alarming rate of gold smuggling.

The reason for large smuggling of gold has been attributed to the 1.5% withholding tax on unprocessed gold therefore removing the tax would bolster the foreign inflow of forex to support the development of Ghana.

It was anticipated that government would need GH¢268.75 million in revenue from betting winnings and GH¢145 million from unprocessed gold.

During the debate, Majority Leader Mahama Ayariga said the removal of the taxes on unprocessed gold would improve the disposable incomes of small-scale miners and pave way for the establishment of the Gold Board.

The Minority Leader Alexander Afenyo-Markin downplayed the tax abolitions, saying, it was “much ado about nothing”.

He said, in 2017, the Akufo-Addo-led government abolished 15 “nuisance taxes” imposed by the previous Mahama-led government and thus encouraged the government to do more to improve the living conditions of the people.

Source: GNA

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