Zimbabwe taxes gambling winnings, bets on rain to reduce power outages and hike growth

Just as Zimbabwe’s finance minister, Mthuli Ncube, finished presenting his 2025 fiscal budget on Thursday, the Mount Hampden parliamentary building experienced a power cut.

Opposition legislators started chanting: “State of affairs! State of affairs!”

That is factually accurate; Zimbabwe has been experiencing power cuts of 20 hours, and sometimes more. Earlier during his presentation, Ncube referred to “significant load shedding that continues to weigh down on growth potential and competitiveness of the economy”.

Zimbabwe’s mineral income – the backbone of the economy – is expected to drop by up to 10% this year to some R100 billion because of the power outages, which in turn are largely due to low water levels in the Kariba Dam plus frequent breakdowns at the coal-fired Hwange power station.

In his budget presentation, Ncube warned because of the drought, which also affected food production, growth had been slow at 2% – but better times were coming.

“In 2025, we expect to see 6% growth, based on anticipated better rains, stable inflation, and tight fiscal management,” – he said.

The government has been hard-pressed for money. A day before the budget speech, teachers complained they were yet to receive their annual bonuses, due to be paid in the local Zimbabwe Gold currency. The Zimbabwe Teachers Association said this was a contractual breach and an “erosion of trust between employees and the employer”.

“The absence of this payment has left many teachers unable to meet their financial obligations, particularly at a time when economic pressures are heightened, and end-of-year expenses are critical.”

Salaries for government workers will take up 56.4% of the government’s earnings. To avoid a ballooning wage bill, the government will freeze jobs, excluding the education and health sectors. It has also promised “revenue enhancement measures”.

Next year, the government intends to raise more money from small businesses through a corporate and income tax that they will be required to register for.

If they fail to transact through formal – and thus traceable and taxable – formal channels such as point-of-sale machines, they could be fined hundreds of thousands of rand. The finance minister also introduced a 0.5% tax on sales of fast foods to “promote responsible consumption” since those foods are blamed for an increase in non-communicable diseases.

Last year, Zimbabwe’s betting industry grew by 8.5%. The government will now charge a 10% withholding tax on gross winnings as of 1 January. Meanwhile, Zimbabweans in the diaspora, many in South Africa, are helping prop up the country.

They sent home an estimated R34.2 billion through formal channels between January and September this year, government figures show – and that number is expected to reach as high as R45 billion by year-end.

Zimbabwe has international reserves recorded to be about US$540 million as of 31 October. The total budget for 2025 is pegged at R145 billion, or about R8 000 per person. South Africa’s total spending is around R36 000 per person.

Source: news24.com

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Szarlot

I am a fan of casino games especially roulette and blackjack. After that I analyze current events in the gambling industry.

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Szarlot

I am a fan of casino games especially roulette and blackjack. After that I analyze current events in the gambling industry.