Finance and National Planning Minister Dr. Situmbeko Musokotwane has revealed that the government has begun consultations with betting companies following concerns raised over the recently introduced 10 percent excise tax on betting activities. The minister explained that the introduction of the new tax has prompted some betting companies to suspend certain parts of their operations, which has in turn led the government to initiate dialogue with the affected firms to better understand their challenges and grievances.
According to Dr. Musokotwane, the decision to implement the 10 percent excise tax on betting was not made to cripple the gaming and betting sector, but rather to address the growing social problems associated with betting and gambling addiction. He emphasized that the government is aware of the economic contribution of betting companies, including job creation and tax revenue, but at the same time, it has a responsibility to protect the welfare of citizens, particularly the youth who are most vulnerable to gambling-related harm.
The minister stated that consultations with betting companies are ongoing and that government is open to receiving feedback from all stakeholders to ensure that the tax policy achieves its intended purpose without disrupting the sustainability of the industry. He said government’s primary focus is to strike a balance between raising necessary revenue for national development and addressing the negative social effects linked to excessive betting.
Dr. Musokotwane observed that betting has become a widespread activity in Zambia, with a large number of citizens participating through online platforms and betting shops. While the industry provides entertainment and contributes to the economy, it has also been associated with serious social and financial problems in many households. He explained that families have suffered financial setbacks due to irresponsible gambling, with some individuals spending money meant for essential needs on betting.
He added that government’s intention is to introduce responsible gambling measures and to encourage moderation among citizens who engage in betting. The 10 percent excise tax, he said, forms part of a broader effort by government to promote responsible behavior while ensuring that companies operating in the betting industry contribute fairly to the national treasury.
Dr. Musokotwane reiterated that government values the contribution of betting companies and recognizes their importance in the entertainment and digital economy. However, he underscored that the rapid growth of the sector has also raised concerns about addiction, debt, and social distress among citizens. The tax measure, therefore, seeks to minimize these effects without completely restricting business operations.
The minister further mentioned that the consultations will help government identify areas that may require adjustments or additional regulations to ensure the policy works effectively. He stressed that while taxation is essential for mobilizing revenue, the government’s broader goal remains the protection of citizens’ welfare and the promotion of a responsible gaming culture in Zambia.
