Ghana’s decision to abolish a 10% betting tax while reinstating road tolls has drawn sharp criticism from economists, with University of Ghana professor Peter Quartey calling the move “populist” and economically shortsighted.
The 2025 budget proposal, which scraps the levy on betting winnings in favor of technology-driven road tolls, has ignited a debate over revenue sustainability and fiscal responsibility.
Quartey, director of the Institute of Statistical, Social, and Economic Research (ISSER), argues the policy contradicts basic fiscal logic. Data shows the betting tax generated approximately 140 million Ghanaian cedis ($11.5 million) annually since its 2023 introduction, while road tolls historically yielded far less—peaking at 72 million cedis ($6 million) in 2021 before their 2022 suspension. “Replacing a higher revenue stream with a weaker one defies rationality,” Quartey said in an interview. “This is political convenience, not sound economics.”
The economist emphasized that taxing betting aligns with principles of equitable revenue mobilization. “Consultants pay taxes on earnings—why should betting income be exempt?” he noted, referencing the 20% withholding tax on freelance income. Critics of the betting tax, largely young Ghanaians, argue it discourages a burgeoning informal sector. But Quartey countered that the state should redirect such funds to youth-focused initiatives like sports infrastructure or vocational training rather than subsidize “unsustainable” income channels.
“Betting cannot replace productive employment,” he said. “If we exempt this sector, where does it end? Should we scrap taxes on mobile money because it’s popular too?” His remarks come amid rising reliance on digital betting platforms, particularly among unemployed youth.
The reinstated road tolls, designed to fund highway maintenance, face skepticism over their revenue potential. Previous toll systems were plagued by leakage and corruption, prompting their initial removal. While the new electronic collection method aims to curb losses, Quartey warned that long-term revenue stability requires diverse streams. “Scrapping effective taxes to revive underperforming ones risks eroding our fiscal base,” he said.
The debate reflects broader tensions in Ghana’s economic strategy as it balances public sentiment with post-debt crisis recovery needs. With the country emerging from a $3 billion IMF bailout program, analysts stress that sustainable revenue policies are critical to avoiding future defaults.
Finance Ministry officials defend the shift, stating road tolls will improve infrastructure without “overburdening low-income citizens.” Yet Quartey remains unconvinced: “Populism today could mean austerity tomorrow. Leadership requires tough choices, not easy applause.”
As lawmakers finalize the budget, the controversy underscores the challenge of aligning political optics with economic pragmatism in a nation grappling with 25% inflation and stagnant growth. For now, Ghana’s fiscal future hangs in the balance—between the allure of quick wins and the grind of structural reform.
