21 February 2019 by Special Edition Budget Speech Alert 2019

Government to introduce a gambling tax

Back in the 2011 Budget, the Minister proposed a withholding tax on gambling winnings. The Minister proposed that, with effect from April 2012, all winnings above R25,000, including pay-outs from the National Lottery, would be subject to a final withholding tax at the rate of 15%. The Minister stated that this was in line with practice in a number of other countries, including the United States of America. The aim for introducing this withholding tax on gambling winnings was to discourage excessive gambling.

In the 2012 Budget government proposed the introduction of a national gambling tax based on gross gambling revenue. The gambling tax was to be introduced with effect from 1 April 2013. The proposal at the time was for the 1% levy to fund rehabilitation and awareness raising programmes to mitigate the negative effects of excessive gambling. In the 2012 Budget the government proposed an additional 1% levy “on a uniform provincial gambling tax base. A similar base will be used to tax the national lottery”.

In the 2019 Budget, the Minister announced that government intends to publish draft legislation pertaining to a gambling tax for public comment in 2019.

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