Zimbabwe introduces tax on betting winnings and revises food VAT exemptions in 2025 budget
Peter Moyo
In a bold move to widen the tax base, Minister of Finance Mthuli Ncube announced during the 2025 National Budget presentation the introduction of a 15% withholding tax on betting winnings and revisions to VAT exemptions on food.
These measures are designed to boost national revenue while ensuring fairness in the taxation system.From January 2025, a 15% withholding tax will apply to all winnings from betting and gambling activities. Operators in the betting sector will be required to deduct the tax at source and remit it to the Zimbabwe Revenue Authority (ZIMRA).“This tax aims to bring the rapidly expanding betting industry into the formal tax net,” said Minister Ncube. “Betting has become a significant economic activity, and it is only fair that those who profit from it contribute to national development.”
He further emphasized the social impact, stating, “This measure will also serve to moderate excessive gambling, which can have harmful effects on individuals and families.”The government has also revised VAT exemptions on food items, ensuring basic staples such as maize meal and cooking oil remain VAT-free. However, processed food items like snacks, sugary beverages, and confectioneries will now attract the standard VAT rate of 14.5%.“We have carefully considered the impact on low-income households,” Minister Ncube reassured. “Staple foods will remain exempt, but we are aligning the taxation of luxury and processed items with our health and fiscal goals.”
The new betting tax is expected to raise over ZIG 500 million annually, providing a significant boost to public finances. VAT revisions on processed foods aim to streamline exemptions and generate additional revenue while promoting healthier consumption patterns.While some applaud the government’s efforts to regulate the betting industry and address the fiscal deficit, others have expressed concerns about potential impacts on businesses.
A betting operator who spoke anonymously commented, “This tax could discourage players, especially smaller bettors, but we’ll comply as required by law.”The government asserts these reforms are necessary for achieving equitable taxation while supporting the country’s Vision 2030 goals.
