EXPERTS TANZANIA Tanzania – Gaming stakeholders lobby for tax reduction 4 years ago Szarlot Post Views: 1,584 Taxing cash prize winners in Tanzania`s gaming industry is not only inadvertently hurting its rapid growth, but also restraining and stifling its potential. Innovation and competition have elevated the gaming industry`s offerings and drive more inclusivity among a broader range of audiences, contributing substantially to the economy. In the 2017/2018 fiscal year alone, the industry contributed Tshs.3.4 trillion ($1.4 billion) to the national economy which is an equivalent of over 3 per cent of the Gross Domestic Product (GDP), official data from the Tanzania Gaming Board (TGB) indicates. The Tanzania Sports Betting Association (TSBA) statement issued last week stated that taxing cash prize winners is not only hurting the impressive growth, but also restraining the industry`s considerable potential. The association further stated that despite the industry`s massive contribution, there are concerns over the government`s approach of taxing sports betting which is hurting and inhibiting the industry`s massive potential for growth. The statement also condemned the existing fiscal regime for impeding the core business of the operators in the industry saying the payments made to TGB and Tanzania Revenue Authority (TRA) substantially reduce the winners` cash prizes. It pointed out that cash prize winners` taxation actually punishes players willing to bet through legitimate channels. It cited the reduced earnings as a factor that dissuades players from betting through licenced operators, persuading them to migrate to unregistered and unlicenced platforms where they can receive their entire cash prize. In the advent of technology, platforms operating outside the sphere of the local authorities are not only restricted to the Tanzanian jurisdiction, but also to international platforms that capture revenues from different territories. TGB data shows that there has been an upsurge on tax collections between the 2012/2013 and the 2017/2018 period. In real terms, tax collections from the industry increased from Tshs.11.4 billion ($4.9 million) to Tshs.79.1 billion ($34.3 million), a 606 per cent increase during the period. The TSBA has asked the government to focus on collecting taxes through the gross gaming revenues instead in a bid to give operators room to attract more customers and grow their businesses. Tanzania taxes gaming tax of 18 per cent form each win. An analysis of the TGB data shows the rate with which new players are migrating to licenced platforms is already slowing down, as growing taxes on winnings show a marked decline. For instance, taxes on winnings grew by 94.7 per cent between 2015/2016 when they were introduced and 2016/2017. However, the growth rate decelerated to 41.1 per cent between 2016/2017 and 2017/2018. Source: theexhange.africa About Post Author Szarlot I am a fan of casino games especially roulette and blackjack. After that I analyze current events in the gambling industry. See author's posts SzarlotI am a fan of casino games especially roulette and blackjack. After that I analyze current events in the gambling industry. Facebook Twitter LinkedIn Email Print Tags: gambling industry, Tanzania Continue Reading Previous Kenyans given 48 hours to cash out of betting firmsNext Want to invest in the gaming industry in East Africa? More Stories EXPERTS Top 12 Companies Offering IT Certifications: A Comprehensive Guide to Advancing Your Career 3 hours ago Tools EXPERTS KENYA Gamblers stake Sh620 billion in four years as betting craze rises 4 hours ago Samuel EXPERTS WORLD NEWS Entain To Pay Almost $730 Million To Settle Turkish Bribery Claims 3 days ago Samuel EXPERTS UGANDA iGaming in Africa: An overview 3 days ago Samuel EXPERTS HOT NEWS SOUTH AFRICA Africa’s Digital Future and the Rise of Mobile Gaming 4 days ago Samuel EXPERTS KENYA President Ruto unveils plan to privatise 35 state companies in Kenya 1 week ago Samuel EXPERTS WORLD NEWS Entain ‘remains confident’ but ‘open to constructively addressing’ investor concerns 1 week ago Szarlot EXPERTS KENYA Top 10 African payment trends for 2024 1 week ago Samuel EXPERTS NIGERIA Naira maintains stability in crypto market as Nigerians digest Binance $4.3 billion settlement 1 week ago Samuel EXPERTS NIGERIA Uncategorized Lagos Gambling Regulator LSLGA Issues Ban On Unlicensed Gambling Sites 1 week ago Samuel EXPERTS NIGERIA Nigeria: 15 Years After, Supreme Court Hears Lottery Regulation Dispute March 13 1 week ago Szarlot EXPERTS NIGERIA How Lanre Gbajabiamila is Transforming the Lottery Industry 1 week ago Samuel Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ This site uses Akismet to reduce spam. Learn how your comment data is processed.