Winners of lotto and betting activities in the country are now expected to pay a 5% tax on their earnings. This follows the passage of a new Income Tax Act introduced by government, which took effect from January 1, 2016.
Per the new Act, winners of lotteries who make about GHc2, 592 and above will pay 5% tax.
Making the announcement at the the Graphic Business-Stanbic Bank Breakfast meeting held in Accra today, [Tuesday], a Deputy Commissioner in charge of Policy and Programmes at the Ghana Revenue Authority (GRA), Edward Gyamerah, explained that such activities are classified in the new Tax Act as investment.
“One of the new introductions in the new law is the recognition of lottery activity as an investment activity. So if you engage in any lottery business or activity, the tax law recognizes it as an investment activity and therefore when you make any claim, you pay tax on your investment income.”
“The law has made it simpler for everybody that forgets about the investment cost; whenever you make a gain, pay tax of 5% on the gain, if the gain exceeds GHc2,592 at any point in time. If you get GHc2, 000 nobody is going to ask you to pay tax,” Mr. Ghamerah added.
A number of lottery activities have emerged in recent times competing with the National Lottery Authority (NLA), which has close to 30,000 Point of Sale Terminals (POSTs) nationwide.
Other lottery activities currently patronized in the country includes sports betting games and promotions by some financial institutions and businesses.
By: Godwin A. Allotey/citifmonline.com/Ghana