HARARE – Parliamentarians have endorsed Finance Minister Mthuli Ncube’s proposal to impose a 10% tax on gross winnings from sports betting, marking a pivotal development in Zimbabwe’s growing sports betting industry.
The tax, introduced as part of Ncube’s 2025 national budget unveiled on November 28, aims to expand the country’s tax base and generate funds for sports development initiatives.
During a post-budget analysis session in Parliament on Wednesday, lawmakers from both the ruling ZANU-PF and the opposition supported the move. They emphasised the importance of ensuring the tax revenue is channelled directly into improving Zimbabwe’s sports infrastructure and programmes.
The Parliamentary Portfolio Committee on Sports and Recreation strongly backed the initiative. Nketa MP Albert Mavunga proposed the establishment of a Sports Betting Tax Fund to guarantee that the funds are allocated exclusively to sports development.
“The 10% withholding tax on sports betting winnings is a welcome step for sports development,” Mavunga said. “However, we propose a formal mechanism to reinvest these revenues into Treasury, establishing the Sports Betting Tax Fund for the development of sports infrastructure, athlete welfare, and youth sports academies.”
The introduction of the tax comes at a time when Zimbabwe’s national football team, the Warriors, has been forced to host international matches in neighbouring countries due to the poor state of local stadiums. Many facilities have failed to meet the Confederation of African Football’s (CAF) standards, highlighting the urgent need for investment in sports infrastructure.
Opposition MP Gladys Hlatshwayo also endorsed the tax, noting its potential to curb the growing issue of youth unemployment-driven sports betting. However, she raised concerns about the government’s track record in managing ring-fenced taxes, citing past failures with sugar, carbon, and tobacco levies.
“The tax situation is worsened by the experiences of youths who do not have jobs and are looking for opportunities to fend for themselves,” Hlatshwayo said. “However, we hope that this time, the government will ensure the proper use of these funds.”
In response to concerns, Minister Ncube assured lawmakers that the policy would be monitored and adjusted if necessary. “We are flexible, and we listen. We are not rigid at all. We want to make a better country for all of us, and we will analyse the impact as we go forward,” he said.
The new tax is expected to generate significant revenue for Zimbabwe’s struggling sports sector while serving as a potential deterrent to excessive sports betting among youths. If properly managed, the funds could revitalise sports facilities, support athletes, and foster the growth of youth sports programmes across the country.
Source: NewZimbabwe
