MPs reject 50 per cent tax rule for betting firms

Betting companies got a reprieve against high taxes proposed by the National Treasury after MPs agreed with their view that parting with half their revenue would kill the industry.

The National Assembly’s Finance Committee on Wednesday recommended that sections in the Finance Bill increasing taxes paid by betting companies to a flat 50 per cent be deleted.

“The rate is punitive enough to discourage such activities,” the committee said in its report after scrutinising the Bill and receiving input from various parties.

Gamblers, whether in casinos or on sports betting, don’t pay tax on their winnings.

The Finance Bill is scheduled for the last stage in the National Assembly on Thursday.

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In it, maize and wheat flour as well as bread are exempt from VAT, meaning manufacturers would get a refund for the VAT they pay on inputs rather than passing it on to consumers.

This is also meant to reduce the high cost of living.

Manufacturers of diapers will be expected to reduce the cost of their products after the committee decided to include them in the category of goods exempt from VAT.

This is in addition to sanitary towels and tampons.

Farmers and makers of pesticides could also be a happy lot after the inclusion of agricultural pest control products under goods exempt from VAT.