Zambia proposes 10% excise duty on betting services
The government is to increase national revenue for its K33.6 billion (€1.25bn) supplementary budget for 2025.
Zambia.- The Zambian government is introducing a new 10 per cent excise duty on betting services as part of a broader strategy to increase national revenue for its K33.6 billion (€1.25bn) supplementary budget for 2025.
The betting tax proposal was among a series of new tax measures presented to parliament by Dr. Situmbeko Musokotwane, the Finance and National Planning Minister, in June. According to Musokotwane, the goal of the tax reform package is to boost Zambia’s resource mobilisation without taking on too much debt.
Musokotwane believes the new tax policy will help legitimise the betting sector and reduce financial losses from unregulated betting operations. The move aligns with a bill recently passed by the Zambian cabinet that sought to modernise the nation’s outdated gambling and lotteries regulations.
In addition to the betting excise duty, the tax package also features additional levies on tobacco products and spirits. These include an 80 per cent excise duty on spirits and wines, up from 60 per cent, a 50 per cent levy on clear alcohol from 40 per cent, and a K298 increase on cigarette tax from K452 to K750 per 1,000 sticks.
The tax net widens to include soft drinks, with a proposed excise duty increase from K1 to K2 per litre on sugary and non-alcoholic beverages. The government also expects to raise K1 billion (€37.3m) from regulatory levies charged by agencies, including the Energy Regulation Board and the Civil Aviation Authority.
