State to lay on table 35 per cent tax proposal for betting firms

National Assembly Majority Leader Aden Duale. FILE PHOTO | NMG

What you need to know:

  • National Assembly Majority Leader Aden Duale has proposed that the rates be set at 35 per cent down from the 50 per cent approved by MPs last week.
  • The Majority Leader will place the government offer on the negotiating table as the House looks to finish debate on the Finance Bill.

Gambling companies are expecting a reprieve from Parliament with a proposal to lower the betting tax rate to 35 per cent from the 50 per cent approved by MPs last week set to be tabled in the House on Tuesday.

National Assembly Majority Leader Aden Duale has proposed that the rates be set at 35 per cent, building on an argument he made on the floor last Thursday after MPs shot down most of the recommendations of the Finance Committee.

“We will agree between now and Monday to bring the taxes down and for investors to continue doing business. The deletion is the one that brought problems. The chair [of the Finance Committee] will have another opportunity to consult the Treasury and the investors,” said Mr Duale. 

The Majority Leader will place the government offer on the negotiating table as the House looks to finish debate on the Finance Bill.

Mr Duale and members of the Finance Committee last week saved the situation for gambling companies by activating House rules that allow the final approval of a Bill to be stopped for changes to be made to selected parts.

Benjamin Langat, chairman of the Finance Committee, told his colleagues that the agreement to have the 50 per cent tax was not reached after consultations with stakeholders, the Treasury and an audit firm.

There were also comparisons with what happens in Uganda, Tanzania and the United States. He had the support of Minority Leader Francis Nyenze and his deputy, Jakoyo Midiwo, who argued that increasing the taxes would drive the sector under.

“We have to be realistic. These are people who pay taxes. This is a business like any other business and there is no need to drive it down,” said Mr Nyenze.

Under the changes approved last week, casinos, lotteries and those running prize competitions would be required to hand over half their revenues — what they are left with after paying winners — to the taxman.