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The Zambian government has initiated direct talks with betting operators in response to industry concerns over a newly imposed 10% excise tax on betting stakes. This tax has led to some companies either suspending or reducing their operations due to the financial burden it creates.
Under the new legislation, all betting firms are required to pay 10% of the total amount staked on their platforms each month, with payments due by the 15th of the following month.
The introduction of this excise duty faced backlash from the industry, leading companies like Betway and betPawa to challenge it in court. They argued that the tax was excessive, unclear, and financially unviable, warning of potential shutdowns and job losses.
However, their efforts to halt the tax were rejected by the Constitutional Court, which upheld it as a valid consumption tax within the authority of the Zambia Revenue Authority.
Now, in an effort to address the industry’s concerns, Dr. Situmbeko Musokotwane, the Minister of Finance and National Planning, announced on Tuesday (Nov 4) that the government is eager to engage with operators to find a resolution.
Tax meant to tackle gambling harm, not cripple industry
The minister emphasized that the government is actively consulting with betting operators and is open to feedback from all stakeholders to ensure the new tax policy serves its intended purpose without jeopardizing the industry’s sustainability.
Musokotwane highlighted the government’s goal of finding a balance between generating revenue for national development and addressing the negative social impacts associated with excessive gambling.
He acknowledged that betting has become a prevalent activity in Zambia, with many citizens engaging through online platforms and local betting shops. While this industry provides entertainment and contributes to the economy, it has also led to significant social and financial challenges for numerous households.
Musokotwane again clarified that the aim of the 10% excise tax is to promote responsible gambling behaviors and encourage moderation among bettors. This tax is part of a larger initiative to ensure that companies within the betting sector contribute fairly to the national treasury while building a culture of responsibility.
Furthermore, the ongoing consultations will help identify areas that may need adjustments or additional regulations to ensure the policy functions effectively.
Source: Focus Gaming News
