Betting tax needs evaluation, says ZiCA chief

By BUUMBA CHIMBULU

THE effectiveness of the introduction of a 10 percent excise duty on the betting amount policy in curbing gambling addiction will require evaluation over time, says Zambia Institute of Chartered Accountants (ZICA).
Commenting on the 2024 tax bills, ZICA president, Yande Mwenye said the overtime evaluation could possibly be done through studies on betting behaviours and public health impacts.
“In light of high levels of poverty and unemployment, gambling may be seen as a desperate attempt to earn income.
“The tax authority should also regulate the location of betting operations, which are often concentrated in communities with vulnerable populations, Ms Mwenye said at the 2024 fourth quarter media briefing on various national matters issued in public interest in Lusaka this week.
She said ZiCA welcomed this amendment as it helped to broaden the tax base, adding that this duty served a dual purpose by potentially acting as a deterrent to excessive gambling.
Ms Mwenye expressed optimism that by increasing the cost of betting, it may reduce the frequency and volume of bets placed, thereby addressing concerns about gambling addiction and its associated social risks.
She, however, said the success of this tax in raising revenue without overly harming the betting market would depend on how sensitive consumers were to price changes and how well the industry could absorb or pass on the added cost to customers.
“The introduction of a 10 percent Excise Duty on the betting amount is a fiscal measure that not only broadens the tax base but increases government revenue, which can be allocated towards funding social services.
“This duty aims to capture revenue from the betting industry, which has been underrepresented in tax contributions relative to its economic impact,” Ms Mwenye said.