EXPERTS KENYA The new tax proposal in Kenya 1 year ago Samuel Post Views: 406 The Ministry of Finance is seeking to reintroduce excise duty on betting at a rate of 20 percent of the amount staked. This means total taxes would exceed 86.5 percent, which could again bring closure of some betting firms due to the unfavorable working environment. Here is a list of all the taxes that betting companies would have to pay: 20 percent Excise Tax on betting stake 1.5% Digital service tax on betting tax 15 percent Betting Tax Tax on winnings 20 percent Income tax 30 percent Additionally, the return on investment in Kenya through the payment of profits/repayment of loans would be subject to additional taxation in Kenya, which would lead to the situation that due to the applied tax policy, doing business in Kenya would not be commercially viable. Reintroducing excise duty on betting, total taxes would exceed 86,5 percent. The negative effects of stringent measures could again bring closure of some betting firms Foreign companies describe the Kenyan market as an over-taxed and unfair operating environment. The companies in the industry are already paying high fees, and additional taxes are being proposed, which do not exist in Europe or America. In England, the tax on the difference is 20 percent, and there is no tax on winnings or stake, Kenya would be one of the few countries in the world to adopt this model of taxing the gambling industry. Excise duty on betting was introduced in 2019 but was removed in July last year. One of the reasons behind removing the tax was that the high level of taxation had led to punters placing bets on foreign platforms that were not subject to tax and thereby denying the government revenue. Parliament scrapped the excise tax saying that it is meant to reverse the negative effects of stringent measures that included the closure of some well-known betting firms. That closure led to job losses for hundreds of Kenyans and a revenue gap to the taxman who had annually collected billions of shillings in taxes from the betting industry. Gaming companies are big sponsors of Kenyan sports and generally have a great impact on the community. They have especially stood out with donations during the coronavirus pandemic. Source: ghafla.com SamuelI am a journalist specializing in gambling in Africa and around the world. I am particularly interested in stories about games and casinos. Facebook Twitter LinkedIn Email Print Tags: Kenya, KRA, tax Continue Reading Previous How are African Markets Able to Compete More?Next Tips and tricks to master online casino games. More Stories EXPERTS KENYA State seeks to hold suspect cash, properties for longer 2 days ago Samuel KENYA Court bets against former Kiron employee’s assurances 3 days ago Szarlot EXPERTS KENYA Regulator now orders audit on betting firms’ sponsorship deals 5 days ago Samuel EXPERTS NIGERIA FG Moves To Weed Out Some Sports Betting Companies In Nigeria 5 days ago Szarlot BETTING KENYA Gamblers win Sh380bn through SportPesa bets 5 days ago Szarlot BETTING KENYA Low-income people finance Kenyan bookmaking companies 5 days ago Samuel EXPERTS NIGERIA 5 types of people you only see in betting shops 6 days ago Szarlot EXPERTS SOUTH AFRICA Vodacom plans a quarter of revenues from digital financial services 6 days ago Samuel KENYA ONLINE Kenyans top global uptake of mobile money-based app loans 1 week ago Szarlot BETTING KENYA The boom in online sportsbetting in Africa 1 week ago Szarlot ETHIOPIA EXPERTS HOT NEWS 5G Network Service Arrive in Ethiopia 1 week ago Adeleye Awakan EXPERTS SOUTH AFRICA Why People Love Gambling 1 week ago Szarlot Leave a Reply Cancel replyYour email address will not be published. Required fields are marked *Comment * Name * Email * Website Save my name, email, and website in this browser for the next time I comment. Δ This site uses Akismet to reduce spam. Learn how your comment data is processed.