The Zambia Institute of Chartered Accountants (ZICA) has welcomed the Customs and Excise Amendment Bill, to introduce a 10% excise duty on betting companies stating that it will help to broaden the tax base.
ZICA President, Yande Mwenye, says the 10% excise duty on the betting amount is a fiscal measure that not only broadens the tax base but increases government revenue, which can be allocated towards funding social services.
Speaking during the 2024 Fourth Quarter Media briefing in Lusaka today, Ms. Mwenye said the duty also aims to capture revenue from the betting industry, which has been underrepresented in tax contributions relative to its economic impact.
“By increasing the cost of betting, it may reduce the frequency and volume of bets placed, thereby addressing concerns about gambling addiction and its associated social risks,” said Ms. Mwenye.
Ms. Mwenye said the success of this tax in raising revenue without overly harming the betting market, will depend on how sensitive consumers are to price changes and how well the industry can absorb or pass on the added cost to customers.
She also said the effectiveness of this policy in curbing gambling addiction will require evaluation over time, possibly through studies on betting behaviors and public health impacts.
She said the tax authority should also regulate the location of betting operations, which are often concentrated in communities with vulnerable populations.
Margaret Mwanza
