MPs back Mthuli ’sports betting tax proposal

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Parliamentarians have endorsed finance minister Mthuli Ncube’s 2025 budget proposal to introduce a 10 percent tax on gross winnings from sports betting, a growing industry on the Zimbabwean business space.

The levy, according to Ncube’s budget statement presented 28 November this year, aims to incorporate punters into the tax base.

During Wednesday’s post-budget analysis in the august house, MPs from across the party divide endorsed the proposal which they felt should be appropriately channelled towards efforts aimed at improving the state of Zimbabwean sports.

In a show of support for the betting tax, the parliamentary portfolio committee on sports and recreation then recommended that the government establishes a sports betting tax fund aimed at developing the country’s sporting infrastructure.

“The 10% withholding tax on sports betting winnings is a welcome sports development. The Committee recommends the step,” said Nketa MP Albert Mavunga.

“However,” he added, “a formal mechanism to reinvest these revenues into Treasury should establish the Sports Betting Tax Fund specifically for sporting development, ring-fencing the revenues from the 10% sports betting tax to create a fund dedicated to the development of sports infrastructure, athlete welfare, and youth sports academies.”

The proposal comes at a time the national football team has been playing its home games in neighbouring countries because Zimbabwe’s stadiums fall short of the standards set by the Confederation to African Football (CAF) to host international fixtures.

Gladys Hlatshwayo also said the introduction of the tax will go a long way in discouraging unemployed youths from sports betting, a practice often frowned upon by many as indicative of idleness.

“The tax situation is further worsened by the experiences of do not have jobs and are looking for opportunities to fend for their yesteryear, where ring-fenced funds such as the sugar tax, carbon tax and tobacco tax have not been used for the purposes that they were set up for,” said the opposition lawmaker.

Speaking in the house, finance minister Ncube said the 10 % withholding tax on sports betting was flexible to future adjustment.

“We feel that we are flexible. We review these things and we listen. We are not rigid at all,” he said

“We are also trying to make a better country for all of us but we thought let us go ahead with the 10% withholding tax and then we analyse the impact as we go forward.”

—ZimLive