Taxing Luck: Zimbabwe's new betting levy sparks ou...

Taxing Luck: Zimbabwe's new betting levy sparks outrage

Oscar J Jeke

Zim Now Writer

A recent move by the Zimbabwean government to impose a 10% withholding tax on gross winnings from sports betting has ignited a firestorm of criticism from gamblers across the country. The new tax, which is set to take effect from January 1, 2025, is part of Finance Minister Mthuli Ncube's plan to broaden the country's tax base.

"I propose to introduce a 10% withholding tax on gross winnings of sports betting punters, with effect from January 1, 2025," Ncube announced during the 2025 budget presentation. This tax will apply to both in-house and online betting.

However, the policy has been met with widespread disapproval from gamblers who argue that it unfairly targets those who occasionally win. "I do not think it is fair for the government to be lurking in the shadows for our winnings," lamented Fanuel Man'ombe, a frustrated punter. "When I win, it's not a huge sum after accounting for previous losses."

Aaron Bonjisi echoed these sentiments, expressing concern about the high tax rate. "It's too much," he said. "We're already burdened by taxes from churches and the government. What's left for us?"

Many gamblers believe that the tax should be levied on betting houses, as is the case in countries like Kenya and Ireland. They argue that this would be a fairer approach, as it would not directly impact individual bettors.

"It's cruel," said one anonymous gambler. "The government doesn't help us when we're down, but they want a cut of our meager winnings. Where are we supposed to turn?"

Kudzai, a regular better, has already adjusted his betting habits in response to the new tax. "I'm limiting my bets and saving for other things," he explained. "I'm the one who loses most of the time, and I can't afford to pay taxes on my occasional wins."