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Zimbabwe Finance Minister Mthuli Ncube. Image: REUTERS/Philimon Bulawayo

Mthuli Targets Betting Winnings as New Taxes Bite

Zimbabweans betting on luck will now see 10% of their winnings withheld as tax, part of a slew of revenue measures introduced by Finance Minister Mthuli Ncube in the 2025 national budget. Previously, betting shops were taxed 3% on their gross takings, but betters themselves were spared. Now, whether betting in-house or online through local operators, winners will feel the taxman’s pinch.

The move is one of several initiatives in a budget that exposes the depths of Zimbabwe’s fiscal woes, targeting informal businesses, fast food lovers, and even property rentals.

From clothing boutiques to car dealerships, informal traders are under pressure to register for Corporate and Income Tax. Previously cushioned by presumptive taxes, these businesses now face shutdowns if they fail to comply. The Zimbabwe Revenue Authority (ZIMRA) is empowered to close unregistered operations until taxes are paid, and hefty fines loom for defaulters.

No bank loan over US$20,000 will be approved for businesses without proper tax registration. Similarly, mining rights applications require proof of compliance.

Mthuli is also eyeing fast food, with a 0.5% tax on all sales of items like chicken, chips, burgers, and pizza. Citing health concerns over obesity and related diseases, the minister defended the tax as a step toward “responsible consumption.”

Elsewhere, landlords converting homes into commercial spaces must now pay a 25% Rental Income Tax. Companies renting such spaces are also mandated to disclose their landlords to ZIMRA, or risk losing tax deductions on rental expenses.

Meanwhile, facing a ballooning wage bill, the government plans to freeze public sector recruitment except for critical areas like health and education. Next year’s wage allocation will consume 56.4% of revenue, overshooting the government’s policy target of 50%.

On Investor Tax Incentives, Investors previously attracted by five-year tax holidays under Special Economic Zones will see these incentives slashed. A Corporate Income Tax rate of 15% and a 10% withholding tax will replace the holidays, impacting industries such as petroleum and mining.

on the Energy Sector Investments, Despite ongoing load shedding, the budget includes plans to fund energy projects, including refurbishments at Hwange Power Station and 100 mini-solar grids. Customs duty on electric vehicles has been cut from 40% to 25%, and tax rebates introduced for companies building charging stations.

On a brighter note, diaspora remittances are projected to hit US$2.49 billion this year, up 16.5% from 2023. However, export revenue remains flat at US$7.4 billion, hindered by falling global commodity prices.

Mthuli’s measures are expected to stir debate, as citizens and businesses alike face tougher tax obligations in a challenging economic climate.