Sammy Awuku, the former Director-General of the National Lottery Authority (NLA) and a Member of Parliament for Akuapem North representing the New Patriotic Party (NPP), has expressed his approval of the government’s decision to eliminate the betting tax.
Awuku, who has consistently opposed the tax even during the previous administration, characterized it as an ineffective measure that has not produced favorable outcomes in various regions.
“I am pleased that the betting tax is set to be abolished,” Awuku stated in an interview with Daily Guide Network (DGN). “I have maintained this position throughout the NPP’s time in office, asserting that such a tax has not proven successful in many areas where it has been implemented.”
He further articulated his concerns regarding the detrimental effects of the tax, particularly on government-owned entities like the National Lottery Authority (NLA).
“The lottery was included in the betting tax framework. The National Lottery Authority, being a government entity, not only engages in its operations but also has an obligation to contribute to national revenue,” he clarified.
Awuku highlighted the challenges posed by the tax, which he argued made illegal betting options more appealing to consumers. “When the government imposes a tax on its own operations, it inadvertently strengthens the position of illegal operators,” he remarked.
“If one participates in government-sanctioned betting, they incur a 10% tax on their winnings. Conversely, engaging with illegal operators allows players to retain their entire winnings. Thus, I have conveyed that this approach is counterproductive,” he continued.
Awuku’s critique extended to the broader inconsistencies within the ruling National Democratic Congress (NDC) government, noting that previous statements from the Finance Minister-designate had suggested not only the removal of the tax but also the potential prohibition of betting and lottery activities altogether.
The challenge regarding the NDC’s stance lies in the fact that the Finance Minister-designate had previously stated that a complete ban should be implemented, rather than merely eliminating the tax.