Ghana introduces 10% tax on lottery winnings amid implementation delays

Sammi Awuku, the Director General of the National Lottery Authority (NLA), announced that the authority has not yet implemented the 10% withholding tax on gross lottery winnings. In an interview on Adom FM’s Dwaso Nsem, he explained that the delay is due to the complexities involved in the implementation process.

Awuku stated that the NLA is government-owned and contributes to the consolidated fund after deducting operational costs and CSOs. He expressed concerns about illegal operators in the market, noting that if a 10% tax on winnings were imposed, illegal operators could potentially collapse businesses by claiming to pay out full winnings.

The government introduced this withholding tax in April 2023, which applies to both domestic and foreign companies involved in lottery operations. The Ghana Revenue Authority has emphasized that compliance with this tax law is mandatory and failure to adhere will be considered an offense under the Revenue Administration Act. The NLA is expected to begin implementing this tax by January 1, 2024.