Zimbabwe: Withholding Tax Seen as Socially Unfair
HighlightsÂ
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Finance Minister Mthuli Ncube imposed a withholding tax to enhance the overall tax collection.
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The new tax policy poses challenges for smaller operators, consuming significant time and financial resources.Â
In the budget drafted for 2025, Finance Minister Mthuli Ncube requests the implementation of withholding tax, indicating a rapid rise in sports betting in the region. Despite this, the revenue generated from this sector failed to make a significant impact as punters’ winnings were untaxed.Â
To help boost and channelise the revenue collection, he introduced 10% withholding on gross sports betting winnings. This reform came into effect on 1st January and applies to all betting shops and land-based makers operating via an online platform.Â
As per Herald news published on 13th March, that Zimbabwe gambling revenue had generated about $120 million revenue in 2023, with digital platforms accounting for $45 million.Â
To incorporate these regulatory changes, it has become mandatory for operators to level up their transaction and reporting systems to automate a 10% tax charge on winning payouts. This could greatly impact turnover, especially for smaller operators, by utilising sufficient time and financial resources.
Additionally, imposing a standard 10% rate for all participants could burden low-income and casual bettors. This could indirectly urge them towards unconventional platforms for bettingÂ
For more details, Read Here!
To help boost and channelise the revenue collection, he introduced 10% withholding on gross sports betting winnings. This reform came into effect on 1st January and applies to all betting shops and land-based makers operating via an online platform.Â
As per Herald news published on 13th March, that Zimbabwe gambling revenue had generated about $120 million revenue in 2023, with digital platforms accounting for $45 million.Â
To incorporate these regulatory changes, it has become mandatory for operators to level up their transaction and reporting systems to automate a 10% tax charge on winning payouts. This could greatly impact turnover, especially for smaller operators, by utilising sufficient time and financial resources.
Additionally, imposing a standard 10% rate for all participants could burden low-income and casual bettors. This could indirectly urge them towards unconventional platforms for bettingÂ
For more details, Read Here!
