New tax on sport betting winnings helps Zimbabwe exceed Q1 revenue targets
The recently introduced 10 per cent withholding tax on punters’ gross winnings has helped Zimra surpass Q1 tax targets.
Zimbabwe.- Zimbabwe’s taxman has had a good start to 2025, thanks to a bold new tax on sports betting winnings.
The Zimbabwe Revenue Authority (Zimra) has revealed that it exceeded its tax revenue target for the first quarter of 2025, pulling in an impressive US$1.506bn. This is slightly past its target of US$1.502bn.
Finance Minister Professor Mthuli Ncube attributes the success to a wider tax net, particularly the introduction of a 10 per cent withholding tax (WHT) on punters’ gross winnings – a measure that’s already paying dividends.
The move forms part of broader tax reforms under the National Development Strategy 1 (NDS1), aimed at turbocharging the country’s economic recovery.
“In terms of the Economic Growth pillar of the National Development Strategy 1, the Minister of Finance, Economic Development and Investment Promotion highlighted that the mobilisation of tax revenue and Non-Tax Revenue has surpassed the first quarter target,” Information Minister Dr Jenfan Muswere said at a recent Cabinet briefing, according to The Herald.
Sports betting a goldmine for the fiscus
While the sports betting sector has exploded in popularity across Zimbabwe, it’s now also proving to be a goldmine for the fiscus. The new WHT law means every big win at the bookies comes with a 10 per cent tax deduction at the source, no dodging the taxman here.
The 2025 National Budget pegs projected revenue at around US$7.5bn (ZiG 270.3bn), and this strong start suggests Zimra is well on track.
“We collected US$1.506bn between January and March, indicating that we are on course to achieve… the target by December this year,” said Zimra Commissioner General, Ms Regina Chinamasa.
Other taxes also contributed
Other tax initiatives introduced alongside the punters’ tax include a 0.5 per cent fast food tax and the reintroduction of duties on some medical imports.
However, it’s the sports betting withholding tax that’s generated the most buzz.
In the background, Zimra is upgrading its tech infrastructure to bolster tax compliance. Progress is already visible in the phased rollout of the Tax and Revenue Management System and integrations with multiple banks and government departments to tighten the net on tax evasion.
With Zimbabwe’s appetite for betting showing no signs of slowing, the WHT on winnings may prove to be one of the government’s smartest fiscal plays yet.
