Former Director-General of the National Lottery Authority (NLA), Sammi Awuku, has described as misleading the government’s claim that it has abolished the 10% tax on lottery winnings.
In a statement reacting to the 2025 Budget presentation by Finance Minister Dr. Cassiel Ato Forson, Mr. Awuku pointed out that the supposed tax abolition is nothing more than political spin, as the tax was never implemented in the first place.
Distinguishing Lottery from Betting
Clarifying a common misconception, Mr. Awuku emphasized that lottery and betting are separate activities regulated under different authorities. While the NLA operates under the Ministry of Finance, betting falls under the jurisdiction of the Gaming Commission, which is supervised by the Ministry of the Interior.
“It is important to clarify that lottery is different from betting and so are its taxes. The National Lottery Authority (NLA) is under the Ministry of Finance, while betting is regulated by the Gaming Commission under the Ministry of the Interior. This distinction matters, yet it’s often ignored for political convenience,” he stated.
The 10% Lottery Tax Was Never Enforced
Reacting to the Finance Minister’s budget statement, Mr. Awuku questioned how the government could claim to have abolished a tax that was never enforced.
“After listening to today’s budget presentation by the Finance Minister, I couldn’t help but notice a rather misleading claim that the government has abolished the 10% lottery tax on winnings. But let’s be honest: how do you abolish a tax that was never implemented?” he asked.
He explained that during the tenure of the previous New Patriotic Party (NPP) administration, extensive consultations were held with key stakeholders, including the Finance Ministry, Hon. Amin Adam, and the Ghana Revenue Authority (GRA), which ultimately led to a decision not to implement the tax.
“We recognized early on that taxing lottery winnings would be problematic. It would have been difficult to administer, cripple the lottery sector, unfair to players, and ultimately more harmful than beneficial. That is why the tax was never implemented nor enforced,” he clarified.
A Political Move?
According to Mr. Awuku, the current government’s claim of abolishing the tax is a deliberate attempt to gain political favor rather than a genuine policy intervention.
“So, let’s call it what it is. This isn’t an ‘abolition’ but rather a convenient attempt to score political points. The truth is, the NPP government had already made the decision not to burden Ghanaians with this lottery tax because we understood its impact,” he asserted.
He also pointed out an inconsistency in the Finance Minister’s statement, where he referred to the 10% tax on lottery winnings as a “betting tax.” This, Mr. Awuku believes, further confirms that the tax was never collected in the first place.
“Hon. Amin Adam won’t be wrong to say the betting tax was never collected anyway since the Finance Minister Hon. Ato Forson also referred to the 10% on lottery wins as ‘betting tax.’ So if that’s what the Finance Minister refers to as betting tax, then it was never implemented even though passed in 2023,” he said.
Call for Honesty in Policy Discussions
Mr. Awuku concluded his statement by urging the government to be honest and transparent in its policy announcements, rather than resorting to political narratives that do not reflect reality.
“Ghanaians deserve honesty, not spin. Policies should be about real impact, not just headlines. Let’s focus on the issues that truly affect livelihoods,” he emphasized.
His statement adds to the growing debate on government taxation policies and their implications for businesses and individuals across the country.
-ModernGhana
