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Punters challenge Mthuli Ncube's proposed tax on betting winnings
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The Zimbabwe Punters Association (ZPA) has voiced strong opposition to the proposed 10% tax on sports betting winnings, arguing it would disproportionately affect low-income punters.
The tax, introduced by Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube in the 2025 National Budget, is set to take effect on January 1, 2025. Ncube highlighted the growing popularity of betting, evidenced by the rapid increase in betting houses across Zimbabwe, as justification for the measure.
However, the ZPA, which serves as a platform for engagement between punters, the betting industry, and regulators, has raised concerns about the tax's impact. In a statement submitted to the Parliamentary Portfolio Committee on Finance, Budget, and Investment Protection, the association described the proposal as "harsh" and potentially counterproductive.
"The universal sentiment amongst our members is that the proposed tax is a bit harsh to the majority of the poor punters. In the circumstances, it is the association's position that the proposed tax should be entirely scrapped," the ZPA statement read.
The association is compiling a comprehensive document to outline its objections and detail the potential negative effects on punters, particularly those who rely on betting winnings to supplement their incomes.
Sports betting has surged in popularity in Zimbabwe, particularly among unemployed youth and informal sector workers seeking additional sources of income in a challenging economic environment.
Critics argue that taxing winnings will discourage participation and could hurt the betting industry, which has provided an economic lifeline for many. The ZPA is urging policymakers to reconsider the measure and explore alternative ways to regulate and benefit from the sector without harming vulnerable groups.
The debate over the proposed tax is expected to intensify as the January 2025 implementation date approaches.
The tax, introduced by Finance, Economic Development and Investment Promotion Minister Professor Mthuli Ncube in the 2025 National Budget, is set to take effect on January 1, 2025. Ncube highlighted the growing popularity of betting, evidenced by the rapid increase in betting houses across Zimbabwe, as justification for the measure.
However, the ZPA, which serves as a platform for engagement between punters, the betting industry, and regulators, has raised concerns about the tax's impact. In a statement submitted to the Parliamentary Portfolio Committee on Finance, Budget, and Investment Protection, the association described the proposal as "harsh" and potentially counterproductive.
"The universal sentiment amongst our members is that the proposed tax is a bit harsh to the majority of the poor punters. In the circumstances, it is the association's position that the proposed tax should be entirely scrapped," the ZPA statement read.
The association is compiling a comprehensive document to outline its objections and detail the potential negative effects on punters, particularly those who rely on betting winnings to supplement their incomes.
Sports betting has surged in popularity in Zimbabwe, particularly among unemployed youth and informal sector workers seeking additional sources of income in a challenging economic environment.
Critics argue that taxing winnings will discourage participation and could hurt the betting industry, which has provided an economic lifeline for many. The ZPA is urging policymakers to reconsider the measure and explore alternative ways to regulate and benefit from the sector without harming vulnerable groups.
The debate over the proposed tax is expected to intensify as the January 2025 implementation date approaches.
Source - The Chronicle
