South Africa introduces new gambling tax

The South African government has announced new gambling tax plans, scrapping the proposed withholding tax on winnings above ZAR25,000 ($3,252).

In his 2012 Budget speech delivered on Wednesday, Finance Minister Pravin Gordhan proposed a national tax based on gross gambling revenue that would come into effect on April 1, 2013.

This would take the form of an additional one per cent levy on a uniform provincial gambling tax base. A similar base will be used to tax the national lottery.

Pravin had previously put forward plans to introduce a withholding tax that would have only taxed the winning gambler, but with this new initiative, the gambling industry as a whole will shoulder the additional burden.

The Casino Association of South Africa previously warned against a withholding tax, arguing that it will have a detrimental impact upon the industry, operators and employment.

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Source: Intergame Online

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