Director-General of National Lottery Authority (NLA), Mr Kofi Osei-Ameyaw, has assured Lotto Marketing Companies (LMCs) that taxes on lotto wins would soon be waived.
He also assured them that payments for lotto wins would, in future, be made at Point of Sales (PoS) with the introduction of e-kiosks to be provided by the NLA.
This brings the question which one he was really referring to - 'whether the proposition made above includes all events under the National Lottery Authority or just the traditional lottery system where you visit the lottery agent in a kiosk to bet on a specific group of figures'.
Although a lot of people are in dark, it so happens that all the promos (be it a network promo - i.e. 'Airtel Wo MmreƐ Nie!', Vodafone y3-twi-kor or a bank promo), it functions under the National Lottery Authority.
Lotto Winners to pay Taxes Policy Explained
“The Authority has sent proposals to the ministry of finance for the scrapping of taxes paid by lotto agents to attract more operators into the mainstream operations,” Mr. Osei-Ameyaw disclosed at a meeting with LMCs in Accra yesterday.
NLA, he further revealed, will introduce about 30,000 modernised and innovative e-kiosks nationwide by November this year to provide value-added services in the lotto business.
“These modernised sales points will allow agents to provide services like mobile money, and receive taxes on behalf of the Ghana Revenue Authority (GRA),” he added.
According to Mr. Osei-Ameyaw, his outfit was considering increasing the commission earned by operators from the current 20 to 25% or more.
“There are also plans by the NLA to initiate and implement a welfare package for all its agents once the necessary strategies are put in place,” he pointed out.
He said NLA was also putting in place measures to telecast live lotto draws as was done years ago to ensure that operators were keenly involved in the draw.
Meanwhile, the LMCs have raised some concerns on the issue of payments for wins. An LMC executive of the Greater Accra Region, Mr Nii Adjiri, said the NLA should stop ‘illegal operators’ from operating Banker-to-Banker until they were fully licenced.
He said, some illegal operators monitor the closing time of licenced lotto agents and draw times and take an opportunity to do illegal business within that period.
The NLA, he went on to add, contributes about GH¢35 million annually to the Consolidated Fund, and gave the assurance that it was aiming to increase it to a 100 cedis annually.
What is NLA?
National Lottery Authority is a statutory agency of the Ghana and it is under the Ministry of Finance. As a governmental organization, the NLA is responsible for organizing raffles for the nation, for a chance to win outstanding prices thereby making lives more appreciating, fun, and better for each and everyone including rich and poor.
The NLA was originally established as the Department of National Lotteries in 1958 with a Mandate to organize raffles for the public to have fun and win prizes. In 1960, the Lotto and Betting Act 94 was passed into law to start lottery in Ghana with the aim of raising revenue to support the development of the country.
Over the past fifty years, the NLA has evolved from its earlier incarnation as a Civil Service Institution known as the Department of National Lotteries (DNL); it has been transformed into an autonomous Public Service Institution, with a legal monopoly on the organization of lotteries in Ghana, and one which is of the most important contributors to both Government revenues and employment generation.
Hence, in 2006, the passing of an Act of parliament, the National Lotto Act 722 gave birth to National Lottery Authority.