News / National
MPs back Mthuli Ncube's sports betting tax proposal
14 Dec 2024 at 10:46hrs | Views
Parliamentarians have approved Finance Minister Mthuli Ncube's proposal to introduce a 10% tax on gross winnings from sports betting, marking a significant step in the growing Zimbabwean sports betting industry. The proposal, part of Ncube's 2025 budget presented on November 28, aims to incorporate punters into the country's tax base and generate revenue to support the development of Zimbabwean sports.
During Wednesday's post-budget analysis session in Parliament, MPs from both the ruling and opposition parties expressed their support for the levy. They agreed that the funds generated from the tax should be channelled into improving the state of sports in Zimbabwe.
The Parliamentary Portfolio Committee on Sports and Recreation strongly endorsed the proposal, with Nketa MP Albert Mavunga highlighting the potential benefits. He suggested the creation of a Sports Betting Tax Fund to ensure that the revenues from the 10% tax are directed specifically toward the development of sports infrastructure, athlete welfare, and youth sports academies.
"The 10% withholding tax on sports betting winnings is a welcome step for sports development. The Committee recommends the step," Mavunga said. "However, we propose a formal mechanism to reinvest these revenues into Treasury, establishing the Sports Betting Tax Fund for the development of sports infrastructure, athlete welfare, and youth sports academies."
The move to implement a sports betting tax comes as Zimbabwe's national football team, the Warriors, has been forced to play its home games in neighbouring countries due to the substandard state of local stadiums. This is a direct result of the failure of local stadiums to meet the Confederation of African Football's (CAF) standards to host international fixtures.
Opposition MP Gladys Hlatshwayo also voiced support for the tax, noting that it could help curb the rising problem of unemployed youth engaging in sports betting as a form of escapism. However, she expressed concerns over the mismanagement of tax funds in the past, citing examples of ring-fenced taxes like the sugar, carbon, and tobacco taxes, which have not been utilized for their intended purposes.
"The tax situation is further worsened by the experiences of youths who do not have jobs and are looking for opportunities to fend for themselves," Hlatshwayo said. "However, we hope that this time, the government will ensure the proper use of these funds."
In his remarks, Minister Ncube assured Parliament that the 10% withholding tax on sports betting was not set in stone and would be reviewed over time. "We are flexible, and we listen. We are not rigid at all. We want to make a better country for all of us, and we will analyse the impact as we go forward," he said.
The tax is expected to generate significant revenue, providing a much-needed boost to Zimbabwe's sports sector, while also offering a potential deterrent to the growing number of young people involved in sports betting.
During Wednesday's post-budget analysis session in Parliament, MPs from both the ruling and opposition parties expressed their support for the levy. They agreed that the funds generated from the tax should be channelled into improving the state of sports in Zimbabwe.
The Parliamentary Portfolio Committee on Sports and Recreation strongly endorsed the proposal, with Nketa MP Albert Mavunga highlighting the potential benefits. He suggested the creation of a Sports Betting Tax Fund to ensure that the revenues from the 10% tax are directed specifically toward the development of sports infrastructure, athlete welfare, and youth sports academies.
"The 10% withholding tax on sports betting winnings is a welcome step for sports development. The Committee recommends the step," Mavunga said. "However, we propose a formal mechanism to reinvest these revenues into Treasury, establishing the Sports Betting Tax Fund for the development of sports infrastructure, athlete welfare, and youth sports academies."
Opposition MP Gladys Hlatshwayo also voiced support for the tax, noting that it could help curb the rising problem of unemployed youth engaging in sports betting as a form of escapism. However, she expressed concerns over the mismanagement of tax funds in the past, citing examples of ring-fenced taxes like the sugar, carbon, and tobacco taxes, which have not been utilized for their intended purposes.
"The tax situation is further worsened by the experiences of youths who do not have jobs and are looking for opportunities to fend for themselves," Hlatshwayo said. "However, we hope that this time, the government will ensure the proper use of these funds."
In his remarks, Minister Ncube assured Parliament that the 10% withholding tax on sports betting was not set in stone and would be reviewed over time. "We are flexible, and we listen. We are not rigid at all. We want to make a better country for all of us, and we will analyse the impact as we go forward," he said.
The tax is expected to generate significant revenue, providing a much-needed boost to Zimbabwe's sports sector, while also offering a potential deterrent to the growing number of young people involved in sports betting.
Source - newzimbabwe
