Economist and Former Rector of the Ghana Institute of Management and Public Administration (GIMPA), Professor Stephen Adei, has advocated for a significant hike in the tax on betting from the current 10% to 50%.
According to him, betting is a detrimental habit that should be discouraged, and a higher tax is one way to achieve this.
Speaking on Hot Issues on TV3 on Sunday, December 22, Prof. Adei described betting taxes as "sin taxes," which are globally recognized as tools for discouraging harmful behaviors. “As a father, as a Christian leader, we call it sin tax. Sin taxes must be higher, not reduced.
Everywhere in the world, cigarette taxes, alcoholic taxes, and betting taxes are increased to discourage usage. I would want them to be 50% because I don’t want my grandchildren to be betting. Betting is one of the disastrous habits we should discourage,” he emphasized.
His call comes against the backdrop of promises made by President-elect John Dramani Mahama to scrap certain taxes within his first 100 days in office.
These include the e-levy, the COVID levy, the 10% betting levy, emissions levy, and import duties on vehicles and equipment for industrial and agricultural purposes.
While commending the need for tax reform, Prof. Adei warned against removing taxes that are easier to collect, such as the e-levy. He argued that the e-levy should be maintained, albeit at a reduced rate, as it provides a simpler way to expand Ghana’s tax base.
"In tax administration, if it costs more to collect money than what you are going to get, you better forget it. The e-levy is easier to collect, so it should be kept,” he said.
Prof. Adei also highlighted Ghana's overly complex tax system, citing an example of 21 taxes levied on car imports.
He called for a comprehensive tax review to eliminate inefficiencies and focus on taxes that are broader and easier to enforce, such as property taxes.
In offering advice to the incoming Mahama administration, Prof. Adei stressed the importance of managing public expectations. Reflecting on the challenges faced by President Akufo-Addo, he noted, “One of the downfalls of Akufo-Addo was his inability to manage expectations"
"What he promised to deliver didn’t align with reality, and this created disappointment. I advise Mahama to carefully manage the expectations of Ghanaians.”
Prof. Adei’s remarks have sparked debate, particularly over whether betting taxes should be increased as a deterrent or whether such a move could drive betting activities underground.
Story by: Joshua Kwabena Smith
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