Monday 17 June, 2019

NLCB tax now law: 10% tax on winnings over $1000 from today

The lotto tax is now officially law.

As such, the National Lotteries Control Board (NLCB) is advising customers that 10 percent tax will be deducted on total winnings per ticket over $1000 from today.

However, it noted that non-cash prizes such as vehicles would not be taxed.

The NLCB made the announcement via an advertisement in the newspaper on Sunday, informing that the law to enable the lottery tax winnings has been proclaimed. 

“Official tax implementation starts tomorrow. The legislation to enable the lottery winnings tax has been proclaimed and will commence Monday 13, 2018,” it said.

The 10 percent tax on winnings was originally implemented on July 30, however, mere days later, the NLCB announced that the tax will be put on hold and persons will be refunded.

It explained that the date for the operationalisation of the tax had not yet been proclaimed by the President and that the technology came on-stream before the proclamation.

The NLCB said it would refund the sum of $998,016.00, which was withheld as taxes during the period July 30 to August 4 on winnings over $1000.00.

Last September, Finance Minister Colm Imbert announced the introduction of a 10 percent tax on cash winnings from the National Lotteries Control Board.

He explained that the tax will be applicable on all games administered by the NLCB including Lotto Plus, Play Whe, Cash Pot, Pick 2, Pick 4 and any other game or set of games, methods or devices as organised and conducted by the NLCB.

The measure was supposed to come into effect from December 1, 2017.

However, in December he announced that the tax will be put on hold.

This as he said it would take the NLCB, lottery vendors and agents some time to get accustomed to the regime of withholding taxes and remittance procedures.

 

 

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