Can e-tax slow down online betting in Ghana?

Ghana’s internet betting sector has exploded in recent years, making it one of the hottest sports betting markets in Sub-Saharan Africa. However, the West African nation’s gaming sector is perhaps the greatest in the area.

Many online betting sites currently exist in Ghana, and over half of the adult population is reported to be actively engaging in some kind of gaming. Regrettably, Ghanaian authorities have been unable to keep up with the rising prevalence of betting.

The Ghana Gaming Commission regulates the country’s gaming sector. The Commission has done well over the years, but controlling the sector is difficult. Unlicensed betting sites are also purportedly still serving Ghanaian gamers.

Some observers believe that the Ghanaian government’s proposed new Electronic Tax Levy in the 2022 budget may slow the growth of online sports betting in the nation.

But is this belief true?

In November, Finance Minister Ken Ofori-Atta suggested a 1.75 percent tax on mobile money and other electronic transactions in Ghana.

“The Government has chosen to charge all electronic transactions to broaden the tax net and include the informal sector. The e-Levy will be known as the Electronic Transaction Levy.

According to Ofori-Atta, these electronic transactions have generated billions of cedis in recent years and have the potential to improve Ghana’s tax collection.

Between 2016 and 2019, the number of active mobile money users in Ghana climbed by 16%. Mobile money transactions have increased in value for the Ghanaian economy, according to GAB President Patricia Sappor.

Can e-tax slow down online betting in Ghana?

During the same time, cash transactions totaled 301.1 billion, while check transactions totaled 68.3 billion. On Thursday, November 18, 2016, during the 25th National Banking Conference in Accra, Ghana, Madam Sappor stated this.

“In the first four months of this year, mobile money transactions totaled 301.1billion, while check transactions totaled 68.3billion. “If the trend continues, as I think it will, mobile money transactions will overtake check transactions by much more than 389 billion dollars in 2020.”

Because mobile money is the most often utilized payment method on online betting sites in Ghana, the new tax changes have been closely watched. If the e-levy is implemented, gamblers would be charged a 1.75 percent fee for each mobile money deposit made to their betting site.

Unsurprisingly, many mobile money users are displeased. Upon hearing of the planned tax, mobile money accounts were said to be emptied in bulk.

If the e-levy goes into force, it is expected that mobile money transactions may lag temporarily, but eventually return to normal.

The tax charge will not have a big impact on Ghana’s mobile money business.

This is particularly true for internet gambling. Betting has grown so entrenched in Ghanaian culture that it would take much more than a mobile money level to bring it down!

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