The Minister of Sports and Recreation, Kofi Iddie Adams, has disclosed that the government may not scrap the controversial betting tax despite calls from various quarters for its removal.
According to him, the government is considering using revenue generated from the betting tax to boost sports development across the country.
The scrapping of the betting tax was one of the campaign promises of John Dramani Mahama during the 2024 general elections. Finance Minister Dr. Cassiel Ato Forson has assured that removing the betting tax would be one of his first acts in office.
However, Kofi Adams has stated that betting generate significant revenue and the government will have to take devise measure to tap into the betting sector and generate enough revenue to establish a sports fund for the country.
“You’re right that sports funding has been a challenge. If you ask any sports minister from the past, and maybe even to my very good self today, what is one big challenge that confronts the industry, I’ll tell you, funding.
“The issue of sports fund is something that has run through, and it cannot continue to be a problem that must be running through, so the promise by the NDC this time around to establish a sports fund must be worked on.
“Whether it is going to be through a sports lottery, whether it’s going to be taking percentages of some taxes that already exist, like for example, people have proposed that there are some taxes on sports betting activities that is generally emanating from sports, so a percentage of the tax that the state gets from sports betting should go into the fund to support sports.
The betting tax, introduced as part of the NPP government’s revenue mobilization strategy, sparked a heated debates, particularly among young bettors and industry stakeholders who argue that it stifles growth. However, proponents of the tax believed it provides a sustainable means of financing the sports sector, which often struggles with inadequate funding.
Hon. Kofi Adams categorically stated that “Because the more the sports grow, the bigger the tax component that also comes to the state, so if a component of the tax that comes to the state can be placed into a fund to help in growing what will feed the state more, why not? That’s one option that has been looked at.”
Source: Elvisanokyenews.com
