Budget...

very good points Rob .
They should've introduced betting tax on sports .
Pmg should object swiftly as your points are more than valid!

I am just thinking of the impact this gambling tax would make in the "stakes payout" if you owned a horse that won stakes over R25 000.00.

These owners would be short-changed yet again (effectively the 15% reduction of stakes money). The real winners will be owners whose horses earn stakes less than R25000.00 (no withholding tax).
If this withholding tax ever comes to being, the racing authorities should look into increasing the stakes money payable to owners whose horses that earn more than R25 000.00 by 15% to compensate for the withholding tax.

What are your thoughts?

"The withholding tax on gambling winnings was in line with practice in other countries including the United States, Gordhan said."

This is laughable. It is amazes me how the finance minister appointed by the ANC led government would draw comparisons with the "imperialists". Its quite convenient at times to draw from the west when it suites them. Do the BRIC nations tax gambling? This would be the correct comparison now that we are a part of BRICS.

I cannot believe that the the aim is to discourage gambling and more so, it wont discourage new gamblers. What it will do, however, is increase the spend. Gamblers at all levels will increase there spend in an attempt to get the desired result in the end. (How many of you take your own plastic bags to the shop now that we have to pay for them?)

This is another tax burden on the already heavily taxed tax paying people of RSA.

How many win R25,000 plus of the gamblers in horse racing. 5%???. Therefore who is this aimed at? The only way to do this properly is to tax after net profit / loss over a financial year. Controlling this is a nightmare though. Maybe my idea on another thread for SARS to control racing funds was not such a bad idea after all!

Another question. The witholding of this tax would effectively sit with, in horse racing, P and GC. this money would not be paid over immediately and a nice chunk of change in interest on investment income surely?

It seems contradictry that Zuma is talking job creation yet the effects of this tax would see jobs shed particulary in a shrinking horse racing industry. Lets hope that the gaming industry puts up a good fight.

Al - I know of people (puzzlers) that were retrenched many years ago and never ever held a permanent job since then, that actually make a living from gambling especially horse-racing. OK- they do not make R15 000.00 a throw but what Mr. Gordhan does not realize is that he is trying to prevent the very same unemployed people from actually make a living.

Would he prefer them begging at every street corner?

Good point East. Mr G will be after waiters and hospitality tips next. What about stripper earnings or the change in car guards pockets. They will be next I am sure.

It seems to be easier to be a criminal in SA - lots of money no tax and a government that seems to protect them and does very little about it. Perhaps we can use one of their on Acts against them. If we look at it through one eye, we consume government services (when they are available). Maybe we can use the Consumer Protection Act against them. (On the CPA, did you know that the NCR National Credit Regulator's infrastructure will be used at first) A lot of ideas are great in theory but in practice they are not worth the paper they are written on.

Forget about tax, we are heading towards regulation to regulate regulation. The tax is needed to write the regulation LOL..... NOT!!!

Not sure that "stakes" won would be regarded as a "gambling"?

Difficult one, does it mean one bet of R25,000, or if you play with a bookies for lets say a month? and you build up credit with various bets and you request to transfer, who would highlight this withdrawl, the bookie or the bank, the tote??

At the end of the day this will probably lead to job losses and an increase in bucket shops as highlighted in the various posts above.

It is all a bit of a joke in horseracing just get two tickets of 24999 (something 99:-) ) at the bookies never take a bet to win more than 25 and on the tote if u play p6 or jp take 10 tickets of 10% how many 10% pay more than 25 ? many ways to kill a cat and keep your tickets that loose as input tax:-)