Tanzania has this month introduced a gaming tax on the amount or value of winnings through casinos and sports betting, tightening the noose on gamblers already squeezed by levies in neighbouring Kenya and Uganda.
In changes to its Gaming Act, Tanzania said levies of 12 per cent and 10 per cent are now applicable on the amount or value of all winnings in casinos and sports betting, respectively—joining its East Africa Community partners Kenya and Uganda, which have both already gone hard on gamblers with punitive taxes to discourage the addictive habit.
“The licensee of gaming activity is required to withhold gaming tax on winnings made and paid for. In this case, the licensee is the withholding agent who is required to remit the tax withheld on or before the seventh day of the month following the month of payment of the winnings; and submit a return or certificate of payment of tax withheld within 15 days after the end of each calendar month,” Tanzania’s Finance Act 2022 reads.
Until this month, Tanzania only focused on the taxation of revenue of betting firms through levies that ranged between 12 and 25 per cent. Its latest tax move means it is going after individual gamblers, hoping to discourage them through painful levies and draw some revenue from the willing die-hard gamers.
In Kenya, gamblers already pay a 20 per cent tax on winnings that betting firms must withhold and remit to the Kenya Revenue Authority (KRA). Consequently, in Uganda, the tax on the value of gaming winnings has been set at 15 per cent and withheld by gaming firms for subsequent remission to the revenue authorities.
The move by Tanzania solidifies a trend in which EAC countries are cracking down on gambling addiction through punitive taxation and other regulatory measures.
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