EXPERTS KENYA The new tax proposal in Kenya 2 months ago Samuel Post Views: 226 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. Announcement: Botswana National Lottery LicenseAdvertising accelerates branding in Brazil's betting marketTechnologies impact on online eGaming growthSet your Author Custom HTML Tab Content on your Profile page 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 NIGERIA Repositioning Nigerian Gaming Industry for Better Performance 9 hours ago Iwo Bulski KENYA ONLINE The Benefits of 5G Across Kenya 9 hours ago Szarlot EXPERTS Technologies impact on online eGaming growth 3 days ago Samuel BETTING HOT NEWS KENYA OdiBets Partner with Khaligraph Rap Challenge tag OdiNare 5 days ago Adeleye Awakan KENYA ONLINE Are Online Casinos Progressively Becoming Popular in Kenya? 1 week ago Samuel BETTING HOT NEWS KENYA SportPesa to Pay Kenya Rugby Union after Sponsorship Deal Blunder 1 week ago Adeleye Awakan EXPERTS SOUTH AFRICA The Growth and Development of Africa’s iGaming Market 2 weeks ago Iwo Bulski CASINO EXPERTS Global Slot Machines Market 2021 2 weeks ago Iwo Bulski EXPERTS IBIA and H2 predict global betting turnover will reach $767bn by 2025 2 weeks ago Szarlot EXPERTS KENYA BCLB creates Kenya’s first advertising guidelines for gambling 2 weeks ago Samuel BETTING HOT NEWS KENYA Betika Introduce No Data No Problem for Kenya Customers 3 weeks ago Adeleye Awakan EXPERTS HOT NEWS Mobile Money Reached $500bn in Africa amid Pandemic 2020 3 weeks ago Adeleye Awakan 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. This site uses Akismet to reduce spam. Learn how your comment data is processed.