- Introduction of 10% Tax: 10% withholding tax on sports betting winnings, effective January 1, 2025
- Impact on Citizens: Tax targets ordinary people who increasingly rely on sports betting as a means of survival
- Call for Broader Reforms: The need to address systemic issues like corruption and government spending
Harare- In his 2025 budget presentation, Finance and Economic Development and Investment Promotion minister, Mthuli Ncube, imposed a 10% tax on all winning betting odds, effective January 1, 2025.
This new tax means that the government will take a 10% cut from the winnings of sports betting enthusiasts.
Let's say you have won $250. With the 10% tax applied, the tax comes to $25. After this deduction, the amount paid to the winner will be $225.
This example highlights the cumulative effect of the tax policy, which can take a substantial portion of winnings from individuals who are often relying on sports betting as a potential source of income.
To ensure seamless collection, the tax will be withheld directly from the winnings by the betting company, before the remaining amount is paid out to the winner.
The introduction of this new tax is aimed at bringing people who win money from sports betting into the tax system, thereby contributing to the government's revenue.
However, for many people in Zimbabwe, sports betting is becoming a desperate attempt to make ends meet.
With few job opportunities available, people are turning to betting as a way to survive. It's a last resort, a way to try one's luck in the hopes of scraping together enough to get by.
The government's new tax on sports betting winnings is essentially a form of daylight robbery.
It's a desperate attempt to squeeze more money out of an already overtaxed population.
Corporates and companies are already shouldering a heavy tax burden, and now the government is turning its attention to ordinary people who are just trying to make ends meet.
But where will it end?
The government has already taxed almost everything, leaving many to wonder what's next.
Will they have to adjust taxes again, placing an even greater burden on already struggling citizens and corporates? It's a vicious cycle that seems to have no end in sight.
The government must recalibrate its focus to address systemic issues like corruption, which siphons off over US$2 billion annually from national resources.
By implementing robust anti-corruption measures and ensuring accountability, the government can unlock new revenue streams and drive economic growth, thereby mitigating the need to overburden the already vulnerable population with excessive taxation.
Also, optimising the political framework and refining economic policies are critical to facilitating a strategic debt restructuring process with Western powers.
This will establish new credit lines and catalyze fresh investment opportunities. By streamlining operations and enhancing governance, the government can alleviate fiscal pressures on citizens while fostering an attractive business climate.
Lastly, government should conduct a thorough cost-benefit analysis of its spending, particularly regarding international travel.
Current expenditures on foreign trips often involve large delegations that yield minimal strategic value, representing a significant waste of resources.
By reallocating these funds toward higher-priority initiatives, the government can conserve capital and promote sustainable recovery without imposing additional tax burdens on the economically disadvantaged.
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