Five MPs from Ghana’s National Democratic Congress (NDC) have taken a bold step to introduce a private members’ bill aiming to repeal the controversial betting tax. Leading this effort are Madina MP Francis-Xavier Kojo Sosu, Ajumako Bisease MP Cassiel Ato Baah Forson, Bolgatanga Central MP Isaac Adongo, Ayensuano MP Teddy Safori Addi, and Tamale North MP Alhassan Sayibu Suhyini. Together, they argue that the tax adds unnecessary weight to the financial struggles already facing Ghana’s unemployed youth.
On Thursday, November 7, 2024, the MPs submitted their bill to the Clerk of Parliament, seeking to amend the Income Tax (Amendment) Act, 2023 (ACT 1094). Their proposal targets the repeal of the withholding tax on lottery winnings, presenting data to support their claims that the tax is detrimental, especially to young Ghanaians struggling to make ends meet.
A Grim Economic Picture
The MPs have pointed to recent studies painting a grim picture of Ghana’s current economic situation. Citing a survey from the Centre for Democratic Development (CDD) published through Afrobarometer, the MPs highlighted that unemployment is a top concern, with 41% of Ghanaians identifying it as the country’s most pressing issue.
Even more concerning, according to the survey, is that nearly 70% of households have faced periods without any cash income in the past year, and 81% of Ghanaians have given the government’s economic performance a resounding thumbs-down.
More Than Just a Tax Repeal
In their appeal, the MPs didn’t stop at the betting tax. They argued that the tax’s economic impact reaches far beyond the betting industry, with consequences for the Domestic Debt Exchange Programme (DDEP) and worsening the ongoing challenges of unemployment and economic hardship. They underscored the lack of safety nets for vulnerable Ghanaians who are struggling to meet daily needs, stating that urgent changes are needed in the country’s tax policies.
“Therefore,” the MPs wrote, “there is an urgent need to introduce programs, including tax policies and measures, aimed at rescuing Ghanaians from the harsh economic realities, reducing the cost of living, promoting savings and investments, and achieving economic stability and sustainable growth.”
This proposed bill, in their view, is about more than repealing a tax—it’s a push for a broader shift in economic policy, one that they hope will bring relief to Ghanaians facing the brunt of the country’s economic challenges.
