The Zambia Revenue Authority (ZRA) has said that the law on gaming and betting being taxed at 20 percent of winnings is not new.
ZRA Corporate Communication Manager Topsy Sikalinda said that the Authority has noted with concern misleading statements related to taxes on gaming and betting sub-sector of our economy.
Mr. Sikalinda said that the facts are that taxes on gaming and betting have been in existence since January 2014, adding that the last amendment was done in 2020 September by the then, Minister of Finance on the floor of parliament as he presented the budget for the subsequent year.
Mr. Sikalinda said that taxes are paid at the rate of 20 percent of free money won and not on the total investment (a bet placed).
He said that the taxation of Gaming and Betting is contained in section sixty-four A of the Income Tax Act and the Income Tax (Betting and Gaming) (Presumptive Tax) Regulations of 2018.
The taxation of Gaming and Betting debate has been raging on social media and in a lot of circles.
However, Green Party President Peter Sinkamba said that his party is extremely disheartened that the UPND Government has decided to indiscriminately impose a 20% withholding tax on any amount that won through betting, without regard to budgetary and constitutional imperatives.
In a statement released to the media, said that all taxes in a given financial year must be approved by Parliament, adding that with respect to the 2021 Financial Year, Parliament directed that no revenue amounting up to K4 000 should be subjected to any direct tax (see page 25 of the Budget Speech 2021).
Mr Sinkamba said that the measure was taken by the previous Government to increase the disposal income of Zambians and as the Green Party, he would therefore demand that the indiscriminate measure the Government has taken to levy withholding tax should be withdrawn henceforth until the new Government put in place a mechanism that ensures that only persons who cumulatively or singly win above K4,000 in a given month are subjected to the withholding tax.
“If your Government will levy the withholding tax contrary to threshold approved by Parliament, then you will be contravening Article 199 of the Constitution of Zambia Amendment 2016 and thereby committing an illegality
“We remind you that you were elected on the ticket of rule of law and constitutionalism. It is too early for you to forget the election platform.
In this regard, we demand that you refund all persons that have been levied contrary to the Constitution and directives of Parliament,’ concluded the statement.
Talking of taxes ,are there any Zambian leaders named in the just released Pandora Papers tax evasion ?
I think Peter Sinkamba has misled himself, the K4,000 tax free income is on those on PAYE which is a salary based tax which has other thresholds and reaches up to 37.5%. The 20% presumptive tax is imposed on income that doesn’t fall in the above category and is at a flat rate. Sports betting just like any other forms of gambling doesn’t guarantee wins. It’s unpredictable income and therefore doesn’t fall under PAYE
So Peter Sinkamba is two in one a gambler and a ganja man.
What about borehole tax what happens now.
Gambling is taxable and rightly so
We need and African Pandora’s Box
At number 2, you took the words right out of my mouth, I agree wholeheartedly with your statement. Betting is not an income.
However, food for thought, if you happen to play the lotto and win 10 million kwacha, should that be taxed or not? And if so, why?
#5 Chiza Chirwa, every income has a tax, it’s only the type that differs. Some sectors that are on presumptive tax are minibus and taxi operators. It also applies to lotto or games of chance. They attract a flat rate. Like in this case 20% is applied on whatever amount one wins. It doesn’t matter whether it’s K10 or K10M or how many times you win, and that’s were Peter Sinkamba got it wrong. The K4,000 tax free income is at annual rate of K48,000. If you begin to earn a salary in October you’ll get a tax credit of K40,000 in the 10th month. I advise Peter to visit a tax advisor, he might be making wrong declarations
This is the problem with people that always like complaining and to some extent seeking relevance after being quiet for some time. Bwana, some areas should be left for professionals and it doesn’t mean that when you are a leader then you know it all. Here you are clearly expressing your ignorance in the subject area. Relax boss.
I would rather listen to ZRA
When is ZRa being cleaned up we have lots of rotten eggs from the top, through so station managers…to the bottom never mind those placed in the system by way of party affiliation……
Instead of raising taxes on the western NGOs and other western imperial multinationals, this boy hh instead decides to go after poor people who just want to enjoy a bet after a tough week at work. We told you that ayopa bazungu chulay uyu
20% is just too much. Let’s not forget that the betting companies themselves pay taxes.
Why tax the winner?
Will government refund losing bets?
At the end of the day it’s the betting companies Making more money.
Where on earth do you tax a k10 win.
Applications of taxes and methods must be applied in such a way that they result in restrain and promote productivity and fiscal multipliers Taxation cannot simply be applied if it doesn’t result in productivity and increase in growth on the economic sectors As it is here ZRA is right to promote productivity and fiscal multipliers on revenues and Government spending on the Budget and fiscal plans
This is nonsense from the gvt you cant tax a 20% % on any winning even if its a k5 where on this planet are we going ???