The National Treasury has extended the deadline for public comment on its proposal to introduce a 20% tax on online and interactive gambling, giving South Africans an additional month to weigh in.
The decision comes ahead of Finance Minister Enoch Godongwana’s 2026 budget speech next month, with officials seeking to avoid a repeat of last year’s backlash against an attempted VAT increase.
According to Eyewitness News, the extension follows heightened political debate during the Mid-Term Budget Policy Statement discussions, where several parties pushed back against any new direct taxes on citizens but expressed support for alternative revenue avenues such as gambling levies.
Treasury’s discussion paper, first released in November, outlines a plan to tax gross gambling revenue at the national level, on top of existing provincial taxes. While the measure could generate an estimated R10bn annually, Treasury insists the proposal is driven primarily by growing concern over gambling-related social harms, especially as more South Africans turn to online betting platforms in search of fast income.
Some industry stakeholders have suggested that the proposed tax may be unconstitutional, but this has not dissuaded its supporters in Parliament. Makashule Gana, an MP for Rise Mzansi, remains a vocal advocate, arguing that meaningful reform is overdue.
“We will not rest as Rise Mzansi until there are proper gambling reforms that protect lives and livelihoods because no nation has ever gambled itself to prosperity,” he said.
The Treasury’s consultation period now runs until the end of next month, after which the submissions will be reviewed before any final decision is made. The outcome is likely to play a central role in shaping both fiscal policy and consumer protection efforts in the months ahead.
The proposal follows a failed attempt to raise VAT last year, which was widely rejected across the political spectrum
