Firms -Government has launched another onslaught against betting firms in the country through a new excise duty.
The step, according to stakeholders, will push gamblers and betting companies to a strenuous end what might even force some to close shop again like it happened a few years back.
Records which have reached Pesatoday.com desk, confirmed that the Treasury wants to bring back the hefty charges in their bid to fetch more revenues from industry players. Both punters and gambling entities will therefore be releasing a 20 percent tax of every bet made; what will end up giving the exchequer billions of money every day.
This is not the first time this is being introduced, in 2019 for instance, the State introduced similar taxes which left many betting companies in a financial crisis. Some had to shut down. Sportpesa – one of the largest firms so far in the country – had to quit business for some years.
And now hit by lack of funds, the broke Uhuru Kenyatta administration is planning to reintroduce the levies. Treasury Cabinet Secretary Ukur Yatani has announced.
Shall these taxes be implemented, Kenya Revenue Authority KRA will start earning sh 20 in very sh 100 staked; an amount that is too high in the current market setting.
Currently, the Betting companies have to withhold 20 percent of any win of the punter which amount they have to remit to the taxman.
The firms also have to pay taxes on the gross income from gambling activities on their respective websites.
