Friday, April 12, 2024
HomeLocal NewsCSO call for return of 20pc withholding tax on betting industry

CSO call for return of 20pc withholding tax on betting industry

By BUUMBA CHIMBULU

THE 20 percent withholding tax on the gaming and betting industry must next year be returned as a way of increasing revenue collection, Civil Society Organisations (CSOs) have proposed to Government.

The CSOs have also proposed introduction of punitive measures to businesses for failure to use Electronic Fiscal Devices (EFDs).

In a joint submission for the 2024 national budget framework, Centre for Trade Policy and Development (CTPD) and the Zambia Tax Platform (ZTP) proposed that the gaming and betting industry was a potential area for revenue mobilisation.

In the 2023 national budget, Government reduced withholding tax on winnings from gaming and betting to 15 percent from 20 percent.

CTPD and ZTP however, through their representative Ellen Makinishi, submitted that the idea of the reduction was to encourage compliance, but noted that this was misplaced, and the reversion must take place.

Ms Makinishi argued that the gaming and betting industry was viewed as a luxury expenditure, implying that players who chose to participate in such activities had often the financial capacity to pay higher taxes.

“The government must increase on alternative ways to increase compliance and introduce punitive measures. Also, enhance monitoring of the companies involved within the sector,” she said.

Meanwhile, Ms Makinishi submitted that the use of EFDs to enhance Value Added Tax (VAT) compliance among business owners had a very low uptake.

She proposed that punitive measures should be applied due to failure to comply.

“The government should put in place punitive measures for those that are not using EFDs. To add on, in capturing the informal sector, ensure that more businesses formalise for easier targeting while working closely with PACRA,” she said.

Ms Makinishi, however proposed that the Zambia Revenue Authority (ZRA) must first raise awareness on the use of EFDs before the punitive measures were applied.

“In raising awareness, ZRA may consider having a window to sensitise (for example six months) the public and punitive measures to follow due to failure to comply,” she submitted.

RELATED ARTICLES

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Most Popular

Recent Comments

Observer. on SEX PILLS IN WATER
Dr. I.P.A. Manning on THE BAN OF POACHERS IN ZAMBIA
Lulumbi on EXPENSIVE WORSHIP
Patrick Bwalya on THE ALEX CHOLA FACT-FILE
Patrick BWALYA on DRIVER HACKED, LEFT FOR DEAD