Betting tax was counterproductive – Sammy Awuku

Sammy Awuku, former Director-General of the National Lottery Authority (NLA) and New Patriotic Party (NPP) Member of Parliament for Akuapem North, has expressed enthusiasm over the government’s decision to scrap the betting tax.

Awuku, who has been a vocal critic of the tax even during the tenure of the previous administration, described it as a counterproductive measure that has failed to yield positive results in many jurisdictions.

“I’m excited that the betting tax is going to be scrapped,” Awuku said during an interview with Daily Guide Network (DGN). “I’ve been consistent about it, even during the NPP era, and I said it is something that personally has not worked in many of the jurisdictions anytime you have introduced taxes on betting.”

Highlighting his concerns, Awuku elaborated on the counterproductive nature of the tax, especially concerning government-owned institutions like the National Lottery Authority (NLA).

“Lottery was part of the betting tax. The National Lottery Authority, for instance, is owned by the government, and apart from the things that they do, at the end of the day, they must also contribute to the national kitty,” he explained.

He pointed out the dilemma posed by the tax, which made illegal betting operators more attractive to players. “If the government is taxing itself, then what will happen is that the underground operators that we call the illegal operators will become emboldened.

“If you play with the government, you attract a 10% tax on what you win. But if you play with the illegals, you get your full money. So, I told them that, for me, it was counterproductive,” he added.

Awuku’s criticism extended beyond the tax policy itself to what he described as inconsistencies within the ruling National Democratic Congress (NDC) government. He noted that earlier comments by the Finance Minister-designate had gone beyond scrapping the tax to suggesting that betting and lottery activities should be banned entirely.

“The difficulty with the NDC position is that earlier the Finance Minister-designate, in time past, had said that it should be banned—not just the tax being scrapped,” he said.