Betting Tax Threshold Proposed: Winnings Below US$500 Shouldn’t Be Taxed – Parliament’s Finance Committee
Finance Minister Mthuli Ncube’s proposal to introduce a 10 percent betting tax on all gambler’s winnings has sparked debate in Parliament. Parliament’s Portfolio Committee on Budget and Finance has recommended significant changes, suggesting that the tax should only apply to winnings exceeding US$500.
Calls for a Fair Threshold on Betting Tax
The Portfolio Committee consulted unions and business associations to gather opinions on the budget. The Committee pointed out that betting taxes are common in countries like Ghana and South Africa. However, it emphasised that fairness must be upheld.
“People generating income from employment and other sources are subject to personal income tax,” the Committee said. “A 10% withholding tax on betting proceeds levels the playing field between those earning through betting and other sources.”
Masvingo South MP Tanatsiwa Mukomberi highlighted the need for a tax-free threshold. He argued that taxing all winnings without exception would be unfair.
“Every income has a tax-free threshold,” Mukomberi explained. “For instance, PAYE has a threshold. Betting winnings should be treated the same. We are proposing that the 10% tax starts at US$500 to ensure fairness.”
He further clarified,
“The proposal is to say, they should not be targeting 10% on gross earnings without a threshold. For example, if a punter wins US$300, they should not be taxed because it falls below the threshold.”
Committee Recommends Changes to Betting Tax
The Committee agreed with Mukomberi’s suggestion and urged the government to consider a US$500 threshold.
“Madam Speaker, Hon. Chiduwa and other Members also recommended a minimum tax-free threshold of US$500 or some form of tax relief for sports betting punters,” the Committee noted.
The Committee added,
“Hon. Members will be aware that the proposed 10% withholding tax is competitive when compared to other withholding taxes, such as fees, dividends, royalties, and contracts, which range from 15% to 30%.”
Will the Minister Agree?
It remains unclear whether Finance Minister Ncube will adopt these recommendations. Punters and betting businesses across Zimbabwe are closely watching the developments.
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The post “Betting Tax Should Start At US$500” – Parliament Pushes Back Against Mthuli Ncube’s Proposal appeared first on iHarare News.
