In a move that’s bound to raise eyebrows (and taxes), the Institute of Community Sustainability is calling for a whopping 50% betting tax to curb what they describe as an “alarming rise” in sports betting among Ghana’s youth.
But here’s the twist: this proposal directly clashes with the vision of President-elect John Dramani Mahama, who has promised to scrap the current 10% levy on betting wins altogether.
A Betting Epidemic?
Eric Jerry Aidoo, Executive Director of the Institute, did not mince words. In a strongly-worded statement, he painted a grim picture of a nation where young people are losing time, money, and potential to an ever-growing betting craze.
“Many young people are spending an inordinate amount of time and money on betting platforms, with some staking 50% of their winnings only to lose it all again,” the statement lamented.
The Institute fears that unchecked gambling could spiral into a national crisis. Financial ruin? Check. Rising crime? Likely. Workplace losses? Almost guaranteed. The group points out that desperate bettors may turn to robbery to fund their addiction, while companies could see productivity plummet as salaries vanish into betting slips.
Ghana vs. the World: Who’s Winning the Betting Battle?
While other nations have been proactive about the dangers of gambling, establishing rehabilitation centers and even innovations like Botswana’s self help portal for responsible gambling to tackle betting addiction, Ghana’s efforts are lagging behind.
“Unfortunately, Ghana lacks such facilities, with only five psychiatric hospitals available, which are not even up to standard,” the statement added bluntly.
The Institute’s solution? Tax betting out of fashion. By increasing the levy to a steep 50%, they argue that not only would it deter young people from gambling, but the extra revenue could also fund critical support systems, including addiction treatment and awareness programs.
Mahama: Betting Tax? More Like Betting Relief
The timing of this proposal couldn’t be more awkward. President-elect John Mahama has been vocal about his plans to roll back unpopular taxes, including the current 10% betting tax.
“We will rationalize taxes, abolishing, among others, the obnoxious e-levy, the COVID levy, and the 10% levy on bet winnings,” Mahama promised while outlining his economic agenda. His pitch: reset the economy, scrap burdensome levies, and ease financial pressure on Ghanaians.
To Tax or Not to Tax? That’s the Question
On one hand, the Institute’s proposal seems draconian. A 50% tax on betting winnings is unlikely to win cheers from anyone with a lucky streak on their favorite betting platform.
On the other, they raise valid concerns about the long-term consequences of unchecked gambling, particularly for Ghana’s youth. Whether it’s addiction, poverty, or rising crime rates, the Institute argues that betting has turned from a harmless hobby to a national problem.
What Next?
As the Mahama administration prepares to take office, they face a clear dilemma: follow through on their pledge to abolish the betting tax, or take a hard look at the Institute’s warning and consider stricter measures.
One thing’s for sure—the debate around betting in Ghana is only just getting started.
Raise taxes or let it ride? Ghana’s youth (and their wallets) are waiting to find out.
