The Gauteng finance department will review the tax rate charged to casinos as part of a drive to increase revenue.
Speaking at a press briefing on the province’s recent financial performance along with its future financial plans, provincial finance minister Mandla Nkomfe said the province needed to bring itself in line with the rest of the country’s approach to gambling taxation.
“Gauteng charges a 9% tax rate to casinos — this is the lowest casino tax rate in the country. Other provinces charge 12% to 15%, with the Western Cape charging up to 17%. What’s most alarming is that this has not been reviewed for the past 13 years,” Nkomfe said.
Six casinos — with about 7Â 500 slot machines and over 250 tables — operate in the province.
According to a survey conducted in 2009 by the Casino Association of South Africa, the South African economy has enjoyed over R140-billion in contributions to the country’s gross domestic product since gambling was legalised in 1996.
In the 2008/2009 financial year, it was estimated that over R20-billion in revenue was created through gambling.
The finance department would begin work with the province department for economic development in reviewing the the approach to revenue from gambling. “We will change the system and increase revenues but this has to be managed carefully to avoid any litigation on the side of the casinos,” Nkomfe added.
Massive infrastructure drive
In the hopes of combating unemployment, Nkomfe said his department would concentrate on implementing the province’s enhanced infrastructure programme, as unveiled in the provincial budget.
The Gauteng government plans to spend R30-billion in the next three years to build new infrastructure and maintain existing transport networks in the province.
“This implementation of the infrastructure programme will, without any doubt, create unemployment opportunities for people in the province and contribute to the reduction of unemployment,” Nkomfe said.
Nkomfe said more information about the infrastructure plan would be revealed during the department’s tabling of its budget in the legislature on Tuesday.