Kenya President Plans to Cut Gambling Tax to 15%

The taxation on gambling remains a hot issue for Kenyan politicians as President Uhuru Kenyatta rejected the Finance Bill 2018 and proposed to cut on the tax from 35% to 15 percent .

In a memorandum, President Uhuru Kenyatta has expressed his resistance to the Parliament, with one of the main issues discussed being the gambling tax. His motives were, according to the online book, very clear — the gambling tax ought to be cut out of the current 35% to just 15%.

This isn’t the first time the Kenyan President takes steps to reduce the taxation on sports gambling and lotteries. Several weeks ago, he supported the same proposal that was made by the Finance and National Planning Committee. A similar plan was introduced back in June as part of the Tax Legislation Amendment Bill 2018. The two measures have been rejected by members of the Parliament who stayed confident that the taxation on gambling ought to be higher.

Even a House member, who wished to be anonymous, told the Business Daily they would not agree to pay back the tax to 15% for one simple reason — the negative societal impact of gambling, which would be aided by reduced taxes. The disagreement between the President and the Parliament is a great deal more than simply institutional battles as it has undesirable effects. Sports teams and local sports bodies are currently waiting for funding from the authorities . It is delayed, but due to the gambling tax battles.

The money isn’t a direct government financing for local sports but rather some of all gambling tax earnings collected from gambling shops and other gambling operations. The government has collected Sh8 billion or roughly US$79.3 million, a few of which should fund sports bodies. Sports Cabinet Secretary Rashid Echesa told social media outlet Standard the Treasury needs approval from the Parliament to launch the capital. According to local reports, the head coach of the national soccer team has not received a salary for 2 months as an outcome from the institutional dissent.

President’s Proposal Seen as Controversial

President Kenyatta could be confident that the gambling tax ought to be reduced but it had been him who accepted a 35% tax on gambling in the first place. Last summer he signed a gambling tax bill into a law and from January 1, 2018, all gambling products were subject to the taxation. This uniform rate replaced the modest 5% tax on lotteries and 7.5% tax for sports gambling operations that were in effect prior to 2018.

Originally, the intent was reducing the alarmingly high rates of gambling one of young folks . The Treasury Secretary even requested a 50 percent tax on all gambling products but Kenyatta suggested a 35% rate would be a far more balanced and beneficial instrument to include minors gambling while enabling healthy revenues. His decision to decrease the rate to 15% was viewed by many as a contentious movement . In accordance with higher taxation proponents, his new ideas demonstrate lobbyists’ clear influence on President Uhuru Kenyatta.

Related News