Betting firms in Kenya have failed in their latest attempt to secure a tax reprieve of the nation’s new 35% tax on gambling services.
It was reported in a local media outlet last Saturday that members of parliament had voted against a proposed amendment to the country’s Finance Bill that would have seen the 35% tax on gambling revenue being reduced to 15% while also reducing gambling operators’ payments to social causes.
Kenya’s new uniform 35% tax on all gambling revenue kicked in on 1st January of this year and brought about a harsh new economic reality for the nation’s betting, gaming, lottery and competition operators who, until then, paid tax rates as low as 5% (lotteries) or 7.5% (betting).
The new 35% tax saw a number of Kenyan operators closing their local operations, while SportPesa, a leading betting operator, scrapped its lucrative sponsorships of local sporting bodies. It did, however, recently ink new deals with a few leagues at a lower financial commitment.
Mvita MP Abdulswamad Nassir, commented that the committee should instead have introduced an amendment to push up the tax in order to discourage gambling among the youth.
Murang’a Women Representative Sabina Chege said that the attempt by the committee to reduce tax on gaming and gambling is a mockery and a shame to that House. She added that many people have been committing suicide, their children are not going to school and their people have refused to work.
The proposal was rejected by MP Kubai Iringo who said that Parliament cannot increase prices of food items and at the same time reduce taxes on gambling.