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The Institute of Statistical Social and Economic Research (ISSER) has opposed the scrapping of the betting tax, arguing that the decision was driven more by political expediency than sound economic reasoning.
In a review of the 2025 budget and economic policy of the government, the Director of ISSER, Professor Peter Quartey, stated that the government should have maintained the betting tax.
He disclosed that the tax generated approximately GH¢154 million in revenue, which could have been used to support other ventures and create decent jobs for the youth.
Prof. Quartey emphasised that betting was not a sustainable avenue for building the future of the youth.
He explained that the tax was introduced to discourage gambling among young people.
In other economies, he noted, betting was treated as a leisure activity rather than a means of earning a living.
He argued that betting should not be considered a viable form of employment and maintained that the revenue from the tax could have been redirected to more productive sectors.
Commenting on the government’s revenue projection, Prof. Quartey described the target of increasing revenue and grants by 20.5 per cent as overly ambitious.
He pointed out that the country had not managed to increase revenue by more than 20 per cent in previous years and suggested that a more realistic target would have been between 10 and 15 per cent.
Prof. Quartey also described the government’s inflation target of 11 per cent for 2025 as ambitious.
He suggested that the target could be achieved if more attention was given to agriculture, particularly food production, to help reduce the rising cost of food, which was a major driver of inflation last year.
On infrastructure development, Prof. Quartey advised the government to explore a Public-Private Partnership (PPP) approach to address the infrastructure deficit, given the limited fiscal space available for government spending.
BY KINGSLEY ASARE
