Dr. John Kwakye, Director of Research at the Institute of Economic Affairs, has voiced a strong opinion against scrapping the 10% betting tax, a move the Mahama administration promised during the 2024 elections.
While Dr. Kwakye supports the abolition of several other levies—namely the E-Levy, Covid Tax, Emissions Tax, and Growth and Sustainability Tax—for the 2025 Budget, he believes that the betting tax plays a critical role in generating revenue and deterring certain behaviors. In a pointed post on his social media account, he argued that for both revenue and deterrence purposes, maintaining the betting tax is not just prudent but necessary.
This stance stands in contrast to the position of Finance Minister Dr. Cassiel Ato Forson, who recently reiterated that eliminating the betting tax would not disrupt economic progress. Dr. Forson stressed that increasing government revenue need not always come from raising tax rates; rather, it could be achieved by improving compliance with the existing tax system and curbing wasteful spending. “Scrapping the Betting Tax will not affect the forward march of the economy,” he asserted, emphasizing that better tax administration and prudent fiscal management are key to addressing Ghana’s economic challenges.
In the broader debate, Dr. Kwakye also called for the government to seriously explore the potential of e-commerce taxation. His comments resonate in an environment where finding new revenue streams is critical, and his call highlights a willingness to balance tax reforms with practical measures that ensure steady government income. The contrasting views between the two officials underscore a fundamental policy debate: while some advocate for reducing the tax burden by eliminating certain levies, others warn that removing proven revenue sources could undermine fiscal stability and deter responsible behavior in high-risk sectors.
As discussions continue in policy circles, the fate of the betting tax remains a focal point in Ghana’s upcoming budget deliberations. The debate illustrates the complexities of modern fiscal policy, where the benefits of tax reduction must be weighed against the risks of losing critical revenue streams. With the government also eyeing improvements in e-commerce tax collection, Ghana appears poised to refine its approach to tax policy by balancing relief measures with strategies that safeguard essential revenue.
