Bright Simons is the Vice President of IMANI Africa
Vice President of IMANI Africa, Bright Simons, has stated that calls to remove the betting tax are justified.
According to him, although some stakeholders believe the betting tax is necessary because it deters people from engaging in gambling, his research suggests otherwise.
Simons noted that taxing gambling does not necessarily deter individuals from indulging in the activity, contrary to the government’s goal of discouraging youth involvement.
He emphasized that the revenue generated by the betting tax, approximately $3 million per year, would not significantly impact the economic sector, as the government could replace it with alternative measures.
This statement follows Minister-designate for Finance, Dr. Cassiel Ato Forson‘s assurance that abolishing the betting tax would be one of his first actions in office.
Read Bight Simons’ analysis on the scrapping of betting tax below
At any rate, the new government must conduct another review of the public revenue framework for the digital economy as a whole and determine how it makes more money from the sector without undermining productivity.
Removing betting tax divides analysts. Some say that because gambling is harmful, a tax on betting is not only necessary (because the government desperately needs the money) but smart. My sense is that the evidence tilts towards removing it.
The most rigorous assessment I have seen of the effect of gambling tax hikes is that they are counterproductive. Professor Matthew Rockloff of Central Queensland University and Dr. Philip Newall of Bristol University present compelling evidence that gambling taxes simply increase the cost of addiction and do nothing to curb the urge to gamble. The betting companies just find other inducements to get gamblers to keep gambling but now with harsher financial effects on addicts.
There is no reason why removing betting tax and foregoing the ~$3 million per year it brings should lead to revenue losses because the government can simply tighten the regime for the betting companies themselves.
Read Bright Simons’ comment in the post below:
The Minister of Finance – designate of Ghana’s new government was very supportive of the positions of Civil Society Organisations (CSO) in some of our advocacy campaigns when he led the parliamentary opposition. And some of us, especially those on the activist front, backed many… pic.twitter.com/xv17jub7M8
— Bright Simons (@BBSimons) January 13, 2025
SB/EK
