New gambling tax could destroy industry- 28 Feb 2011 00:00:00
A new gambling tax, announced last week, could heavily damage South Africa’s horse racing industry and lead to job cuts across the country’s entire gambling community.
Some of the most prominent figures from the country’s gambling industry have protested against the new tax, which means that winnings on gambling activity will be subject to 15% withholding tax from April next year.
Pravin Gordhan, the finance minister of South Africa, announced the tax last week and according to media reports, has since come under criticism for the decision.
Gordhan said of the controversial announcement: ‘despite the obvious merits of this argument, I expect vigorous debate during the Parliamentary process’.
Rian du Plessis, group chief executive of horse racing organisers Phumelela, issued a statement saying that the company will seek to hold an urgent meeting with the finance minister to explain that the tax will have a devastating effect on the business and will cost thousands of jobs across the country.
Plessis added that the new tax, in addition to existing taxes, would significantly reduce the winning amounts and make gambling an unattractive activity to the public.
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