GHANA TO ABOLISH TAX NOW LEVIED ON LOTTERY AGENTS

ACCRA, The government of Ghana has announced that it will abolish THE tax on lotto agents as part of tax policies in the 2018 budget as it continues with the ongoing tax reform of the lotteries industry.

Dr. Edward Larbi-Siaw, the head of the Tax Policy unit at the Ministry of Finance, who announced this at a post-Budget seminar orgainzed by the Ghana Revenue Authority (GRA) here Tuesday, explained that the 7.5 per cent income tax on the commission earned by lotto agents would be abolished and the tax on lotto winnings removed.

He noted that the VAT (value added tax) on lotto would also be removed following passage of the Income Tax Act introduced by the government, which took effect from Jan 1, 2016. In line with the Act, winners of lotteries, who win 2,592.00 Cedis (about 562 US dollars) and above, will pay 5.0 per cent tax, which will come as a relief to lottery winners.

Dr. Larbi-Siaw said the 2018 Budget did not introduce new taxes but rather a reduction in electricity tariffs and other incentives to ensure productivity in all sectors of the economy.

He noted that government, through the Ministry of Finance and its stakeholders, would implement many tax policies to stimulate investment and to shape the economic behaviour.

The government will introduce a Voluntary Disclosure Procedures (VDP) in the Revenue Administration Act, 2016 (Act 915) to waive penalty on voluntary disclosures and payment of unreported and understated taxes by taxpayers within a period agreed with the Commissioner-General of the GRA, he said.

Source: NAM NEWS NETWORK