The NDC’s National Communications Officer, Sammy Gyamfi, took to social media to clarify the party’s stance and address misinterpretations of his earlier comments made during the 2020 election campaign.
Mr. Gyamfi, drawing attention to the attempts by certain New Patriotic Party (NPP) social media activists to twist his previous statements, emphasized that he had discussed the possibility of imposing a tax on sports betting “as it’s done in the UK” during an interview regarding the NDC’s plans to fund the Sports Development Fund promised in their 2020 manifesto.
However, he underscored a crucial distinction between Ghana’s new approach and the UK’s taxation model. In the UK, bet winnings are not taxed; instead, betting companies bear the brunt of taxation. The recent imposition of a 10% tax on bet winnings in Ghana contradicts the UK model and the position Gyamfi had advocated during the 2020 campaign.
Mr. Gyamfi’s statement outlined several key points:
1. Sports Betting as a Necessity: The statement acknowledged that while sports betting might be undesirable, it has become a necessary means of survival for Ghanaian youth facing joblessness and economic hardships caused by the current government’s policies.
2. Insensitivity of Taxation: The imposition of a tax on bet winnings amid the country’s high inflation rate (43.1%) and rising unemployment was criticized as insensitive and unacceptable.
3. Focus on Multinational Companies: The NDC suggested that if the government seeks to raise tax revenue from betting, it should target multinational or foreign betting companies rather than burdening struggling Ghanaian youth.
4. Contradiction of Social Contract: The NPP government’s introduction of multiple taxes, including the new betting tax, was seen as a betrayal of their promise to reduce the tax burden on Ghanaians and stimulate production.
5. Impact on Unemployed Youth: The statement acknowledged that sports betting has become a refuge for the unemployed Ghanaian youth who have been adversely affected by the government’s economic mismanagement.
In light of these arguments, the NDC called for the immediate removal of the newly introduced 10% tax on betting winnings, citing its adverse impact on struggling individuals and its contrast with the NPP’s original promises.
