Betting Is a Disastrous Habit; Increase Tax to 50% – Prof. Stephen Adei
Renowned economist and former Rector of the Ghana Institute of Management and Public Administration (GIMPA), Professor Stephen Adei, has called for the betting tax in Ghana to be increased from 10% to 50%. Prof. Adei argues that betting is a harmful habit that should be actively discouraged through higher taxation.
Speaking on TV3’s Hot Issues program on Sunday, December 22, Prof. Adei described betting as a “disastrous habit” and likened it to other vices that are typically subjected to high “sin taxes” around the world. “As a father and a Christian leader, I believe sin taxes should be higher, not reduced. Everywhere in the world, cigarette taxes, alcohol taxes, and betting taxes are raised to discourage these behaviors. I would advocate for betting taxes to be set at 50% because I do not want my grandchildren or anyone’s grandchildren to be engaged in betting,” he emphasized.
This suggestion comes amidst President-elect John Dramani Mahama’s promise to abolish several taxes within his first 100 days in office, including the betting tax. Other taxes he has vowed to scrap include the e-levy, COVID-19 levy, emissions levy, and import duties on vehicles and equipment for industrial and agricultural use.
However, Prof. Adei cautioned against hasty tax removals, advocating instead for a comprehensive review of the tax system. He argued that taxes should be evaluated based on their efficiency, ease of collection, and economic impact. “There should be a total tax review. There are too many taxes. For example, I imported a vehicle and found about 21 different taxes on it—this is ridiculous,” he said.
He recommended maintaining taxes like the e-levy, which he described as easy to collect. “In tax administration, if it costs more to collect money than the revenue you get, you better forget it. The e-levy, while controversial, is one of the simplest taxes to administer in Ghana. Rather than abolishing it, I would reduce other taxes that are more difficult to collect,” Prof. Adei noted.
Prof. Adei also highlighted the importance of property taxes, suggesting that local governments, particularly in cities like Accra, should take greater responsibility for collecting property rates to fund development.
Reflecting on governance, Prof. Adei pointed out the pitfalls of failing to manage public expectations, citing President Akufo-Addo’s administration as an example. He urged President-elect Mahama to carefully manage Ghanaians’ expectations to avoid disappointment. “One of the downfalls of Akufo-Addo was his inability to manage expectations. What he promised—such as Ghana getting to a point where we don’t need aid—did not materialize. Now we are borrowing heavily. Managing expectations is crucial, whether in a home, an organization, or running a country,” he advised.
Prof. Adei’s remarks highlight the ongoing debate over Ghana’s tax policies and the balance between generating government revenue and addressing the financial burdens faced by citizens. As the incoming administration prepares to take office, these discussions are likely to shape the direction of fiscal policy in the coming years.
