The previously proposed betting taxes in Kenya have been shelved following resistance to any further levies for the gaming business during this year’s finance bill review.
In the 2021 Finance Bill, the government of Kenya imposed an excise duty of 20 percent of the amount staked or wagered on betting products. However, this bill has been reviewed. The finance and national planning committees of the National Assembly received public opinions, with over ten submissions opposing changing the definition of wins. The inclusion of wagered sums in withholding tax computations was met with solid criticism.
Along with the Association of Gaming Operators of Kenya, several associations opposed the new definition. They include the Institute of Public Finance, the America Chamber of Commerce Anjarwalla & Khanna, the Law Society of Kenya, PKF, Grant Thornton, and the Kenya Private Sector Alliance.
In response to the various oppositions, Kenya’s finance committee has reviewed the proposed hike to excise duty on betting. Instead of the initially proposed 20 percent, it has been reduced to 12.5 percent. However, the duty on betting currently still stands at 7.5%.
Furthermore, The Association of gaming operators objected to changing the definition of winnings. According to them, “Amending definition of winnings will discourage punters for it is double taxation as the stake is already being charged with excise tax.”
Wagered amounts will be excluded from taxing winnings.
Unfortunately, the plea to exclude betting firms from withholding tax on wins and remitting excise duty within 24 hours was denied.