Economist Professor Patrick Asuming is urging government to rescind its decision to abolish betting tax, in view of some benefits the country stands to get from maintaining such a taxing component.
According to Professor Asuming, besides the revenue benefits, mainaining such a taxing component could curb the alarming rate at which the youth engage in betting.
During his campaign, President Mahama promised to abolish some taxes, including E-levy, Covid levy and betting tax introduced during the Akuffo-Addo-Bawumia led administration. The introduction of the betting tax during the former administration sparked anger amongst the youth, which became a part of the reasons many protested during the fixthecountry movement last year.
President Mahama then promised to take out the tax element if voted for. This resulted in many young people gravitating towards the former president during his campaigns in an attempt to safeguard their earnings from betting.
“I think in terms of specific proposals, they have proposed to remove the E-levy, Covid levy and betting tax. If you look at what we are projceted to collect from those three in 2025, it will be just around 5% of the revenue and given how much of a nuisance the e-levy has been, removing them wouldn’t be too much of an issue trying to find ways to combat them.”
“But having said that, i dont’t think we should be removing the betting tax. I know the young people in this country will not be happy to hear me say that.”
“One of the problems we have in this country i we have made taxation solely focused on revenue generation, but we forget that we use tax policy to support certain local industries and sectors and to shape some behaviour. And i think the rate at which betting is taking hold of our youth requires some action,” he said.
Professor Asuming’s comments follow that of an institution’s regarding betting regulation in the country.
In December 2024, a group called The Institute of Community Sustainability issued a statement advising the President Mahama to increase betting tax to 50% to curb what they describe as an alarming situation. The group cautioned that advanced countries have realised the devastating dangers of betting addiction and have instituted rehabilitation centres to provide support. But, Ghana lacks such facilities as it only has five psychiatric hospitals available, which are barely up to standard.
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