In a bold move during the 2025 National Budget announcement in Parliament, Finance Minister Mthuli Ncube proposed the introduction of a 10% tax on the gross winnings from sports betting. This initiative aims to tax the growing gambling sector in Zimbabwe and incorporate punters into the tax base.
Ncube outlined the details of this proposal, stating, “In order to embrace punters into the tax base, I propose to introduce a 10% withholding tax on gross winnings of sports betting punters, with effect from 1 January 2025. The withholding tax will apply on both in-house and online sports betting managed by land-based bookmakers. Bookmakers will, thus, be obliged to withhold the tax on behalf of the government.”
This initiative, targeted at both traditional and online betting platforms, reflects the government’s strategy to tap into new revenue streams as it navigates fiscal challenges. Zimbabwe 10% Tax Betting
In addition to the sports betting tax, Ncube introduced a new 20% tax on plastic bags, stating, “In order to promote the use of biodegradable packaging, I propose to introduce a 20% plastic tax on the sale value of a plastic carrier bag.” This move aims to address environmental concerns associated with plastic waste while encouraging the adoption of sustainable alternatives.
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However, the proposals did not go unchallenged. Caston Matewu, the opposition Citizens Coalition for Change (CCC) legislator for Marondera Central, criticized the plastic tax, claiming it would not significantly impact the country’s revenue needs. He remarked, “And the paper bag tax, we have to call him the paper bag man, he is putting 20% paper bag tax, absolutely this will have no effect to the revenue that this country will need.”
Matewu further suggested that the government should focus on more lucrative revenue sources. He said, “Actually, we should be getting more money from mining; he should have said all foreigners who are mining in Zimbabwe should pay so much tax so that we raise the money through natural resources that this country has.”
He concluded his critique by denouncing Ncube’s approach as performative: “What the minister has done was just a talk show. There is nothing for Zimbabweans that will change.”
As the government moves forward with these proposals, the implications for both the sports betting industry and environmental practices in Zimbabwe will continue to unfold, prompting further debate among legislators and the public alike. Zimbabwe 10% Tax Betting