The Zambian government plans to impose a 10% consumption tax on gambling services as part of a comprehensive measure to boost national revenue, expected to bring in an additional budget of 33.6 billion Zambian Kwacha (approximately 1.25 billion euros) by 2025.
Dr. Situmbeko Musokotwane, the Minister of Finance and National Planning, submitted a series of tax reform proposals to Parliament in June this year, including the gambling consumption tax. Musokotwane stated that this move aims to enhance the country's resource mobilization capacity while avoiding excessive debt accumulation.
He noted that the new gambling tax policy would help promote the legalization of the gambling industry and reduce the economic damage caused by unregulated gambling activities. This initiative echoes a recent bill passed by the Zambian Cabinet aimed at modernizing the gambling and lottery regulatory system.
Additionally, the tax reform plan also involves adjustments to the tax rates on products such as tobacco and spirits: the consumption tax on spirits and wine is raised from 60% to 80%, the consumption tax on sake from 40% to 50%, and the tax on cigarettes from 452 Kyats per thousand to 750 Kyats.
Furthermore, the government plans to raise the consumption tax on sugary and non-alcoholic beverages from 1 Kina per liter to 2 Kina and expects to collect about 1 billion Kina (approximately 37.3 million euros) through regulatory taxes levied by institutions such as the Energy Regulation Board and the Civil Aviation Authority.
This tax adjustment demonstrates the Zambian government's commitment to promoting sustained healthy economic development and strengthening public finances through tax reform.
