Parliament Challenges Mthuli Ncube’s Betting Tax Proposal, Calls for US$500 Threshold

Finance Minister Mthuli Ncube’s push for a 10% tax on all betting winnings has drawn significant opposition in Parliament, with calls for a fairer threshold.

Parliament’s Portfolio Committee on Budget and Finance has proposed that the tax only apply to winnings exceeding US$500, addressing concerns about fairness for smaller punters.

The Committee consulted stakeholders, including unions and business associations, to evaluate the impact of the proposed tax. Comparisons were drawn with betting regulations in countries like Ghana and South Africa.

While acknowledging the importance of taxation, the Committee stressed the need for equitable policies that do not unfairly burden smaller winnings. This recommendation aligns with broader tax principles.

“People generating income from employment and other sources are subject to personal income tax,” the Committee noted. Betting proceeds, they argue, should face similar but proportionate taxation.

Masvingo South MP Tanatsiwa Mukomberi underscored the need for a tax-free threshold to protect smaller earnings. He argued that taxing all winnings, regardless of size, lacks fairness.

“Every income has a tax-free threshold,” Mukomberi explained. “Betting winnings should be treated the same. We propose the 10% tax starts at US$500 to ensure fairness.”

Mukomberi further clarified that taxing gross winnings without a threshold would disproportionately affect punters with minimal earnings.

“For example, if someone wins US$300, it should not be taxed because it falls below the threshold,” he stated.

The Committee echoed this sentiment, urging the government to adopt a US$500 threshold or consider tax relief measures for sports betting enthusiasts.

“Hon. Members have recommended a minimum tax-free threshold of US$500,” the Committee noted. “This ensures fairness without discouraging participation in legal betting.”

The 10% withholding tax, as proposed, remains competitive when compared to other withholding taxes on fees, royalties, dividends, and contracts, which range between 15% and 30%.

However, the fairness argument remains central. The Committee’s stance reflects growing recognition of betting as a legitimate income source, requiring balanced taxation policies.

Stakeholders within the betting industry and punters alike are closely following the developments. Many fear blanket taxation could stifle a growing industry that supports livelihoods across the country.

The Portfolio Committee’s push for a threshold has gained traction among lawmakers, but whether Finance Minister Ncube will adopt these recommendations remains uncertain.

The betting tax proposal has stirred broader conversations about fairness in Zimbabwe’s taxation system. Advocates argue that thresholds are critical to ensure that smaller earners are protected.

For now, punters and betting businesses continue to wait for clarity. The final decision on the US$500 threshold could significantly impact the country’s betting landscape.

If implemented, this measure may ease concerns over disproportionate taxation while preserving much-needed government revenue. Parliament’s call signals an important step toward equitable policies.

All eyes remain on Minister Ncube as discussions progress, with the outcome holding weight for Zimbabwe’s betting community and broader taxation frameworks.