The Member of Parliament for Tano North, Dr Gideon Boako, has criticised the government’s digital Value Added Tax (VAT) collection policy, arguing that its application to online betting platforms such as Betway could amount to a return of the betting tax previously abolished by the government.
In a write-up on Friday, October 16, Dr Boako questioned the implications of extending the 20% effective tax rate to foreign digital service providers, including online platforms used by Ghanaians for betting, entertainment and other internet-based activities.
He argued that the policy could impose additional costs on users of services that were previously not charging the applicable taxes.
The MP maintained that describing the arrangement as a mechanism for collecting an existing tax does not change its financial impact on consumers.
He has argued that where users begin paying additional charges on transactions that were previously not taxed at the point of payment, the policy effectively creates a new burden for them.
Dr Boako’s comments come amid the rollout of the GRA’s real-time VAT collection system for qualifying cross-border digital services, which took effect on October 15.
The Authority says the system is designed to improve the collection of existing statutory taxes and does not introduce a new tax rate.
The effective rate remains 20%, comprising 15% VAT, a 2.5% National Health Insurance Levy and a 2.5% GETFund Levy.
The government abolished the 10% withholding tax on betting and lottery winnings in April 2025. However, that tax on players’ winnings was distinct from the current VAT collection arrangements and the separate tax applicable to betting operators.
Dr Boako has urged the government to consider the economic impact of its tax policies on Ghanaians, particularly young people and consumers who depend on digital platforms for business and leisure.