KwaZulu-Natal’s MEC for Finance, Francois Rodgers, has emphasised the need for the province to explore new revenue streams, including the taxation of online gaming and betting.
Addressing captains of the industry at Sanlam's post-budget in Durban on Wednesday, Rodgers highlighted that the proposal is one of the province's potential solutions to its ongoing financial challenges, which have resulted in a heavy reliance on national government funding.
Rodgers pointed out that the province’s local revenue contributes just 2.7% to the provincial budget, with over 80% of funding coming from the national in the form of critical shares.
"There's online gaming and gambling which is happening which, in fact is having an impact on casinos, on horse racing, and it's not taxed in any form. That has to stop. We have to find relevant legislation to be able to tax online gambling"
The MEC stressed that taxing online gambling would require legislative changes and called on Parliament to pass a new bill regulating online gaming, enabling the province to collect tax revenue from these activities.
“What we need is for the national Parliament to pass a new bill for online gaming so that if any online gambling is taking place in KwaZulu-Natal, it can be taxed. It’s an enormous untapped revenue source,” Rodgers said.
KwaZulu-Natal has been facing fiscal strain, particularly after significant cuts to its equitable share from the national government. Over the past four years, the province’s share has been reduced by more than R60 billion.
In addition to the call for online gaming taxation, Rodgers proposed changes to the liquor license taxation system, suggesting a more equitable approach.
"For a long time, liquor licenses and it's one of the industries I was in—we pay a flat fee on our license. And I'm saying that shouldn't be the case. You cannot take a bottle store and compare it with one of the big corporate bottle stores. We should be taxing liquor on volume," he added.
Despite the challenges, Rodgers expressed optimism about the province’s recovery. He also pointed to ongoing fiscal reforms, including the implementation of an e-procurement system aimed at reducing wasteful spending and corruption.
“We’ve already committed R12 million to the e-procurement system, which will ensure government spending is more efficient and transparent. This system will help prevent unnecessary spending and ensure that taxpayers’ money is used effectively.” Rodgers said.
Get your news on the go, click here to join the IOL News WhatsApp channel
IOL Business