New gambling figures put National Treasury’s proposed 20% tax under scrutiny
Total gambling turnover reached approximately R1.76 trillion, up from R1.5 trillion the previous year.
The National Gambling Board's latest annual report reveals a significant increase in South Africa's licensed gambling industry's revenue, raising questions about the proposed 20% additional online gambling tax. The industry's gross gambling revenue, the amount wagered less winnings paid out, rose from R74.5 billion to R84.46 billion in the past financial year, while provincial gambling taxes climbed from R5.8 billion to R6.44 billion.
This led to a total gambling turnover of approximately R1.76 trillion, an uptick from R1.5 trillion in the previous year.
Experts caution that the proposed tax could significantly burden licensed operators, potentially driving consumers towards illegal platforms. Garron Whitesman, a gambling law expert, highlights that the industry currently employs around 25,500 people directly and supports many more indirectly. The industry's contribution to provincial revenue also plays a crucial role in the economy.
However, the additional tax could increase the combined tax burden to approximately 38-39%, before considering corporate income tax and other business taxes.
The NGB report also discloses that the industry contributes substantially to responsible gambling and treatment services, with R57.4 million contributed to the National Responsible Gambling Foundation. Despite this, Whitesman questions whether the government has provided sufficient evidence to demonstrate that the proposed tax will achieve its intended objectives without undermining the existing tax base or negatively impacting the industry.
Written by urgent.news from The Citizen's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
