After a six-month moratorium, the Ghana Revenue Authority has announced that it will be imposing a 10% withholding tax on lotto winnings beginning January 2024.
This is in line with the Income Tax (Amendment) Act 2023, Act 1094, whose implementation began some 6 months ago, imposing a 10% tax on lotto, betting, gaming, and other games of chance.
“Although the implementation has commenced, the National Lottery Authority (NLA) and Private Lotto Operators (PLO) were granted a six-month extension to enable the NLA and PLOs to prepare to implement the 10% Withholding Tax on gross lottery winnings,” GRA said in a statement on Thursday.
“The extension expires in December 2023, and therefore the NLA and PLOs are required to commence the implementation of the Withholding Tax on Lotto Gross Winnings effective January 2024,” the statement added.
GRA urged the cooperation of all stakeholders, including players, operators, and tax consultants, and warned that failure to comply with the directive will attract the relevant sanctions.
Since its implementation, the Bettors Association of Ghana has expressed dissatisfaction with the 10% withholding tax, citing a reduction in disposable incomes and economic hardships.
But the GRA believes the tax will go a long way towards achieving its revenue mobilisation targets.