Tax bracket grows to rope in betting firms

Bookmakers will be required to pay 7.5 per cent of the revenue generated from their business as taxes under a new simplified law.

By introducing the Betting, Lotteries and Gaming (Amendment) Bill, the Treasury is acting on the basis that under the Constitution, imposition of taxation is the responsibility of the national government.

“The Bill seeks to amend (the existing law) to introduce tax to be paid by gaming operators of lotteries, gaming and prize competition in Kenya, which currently do not pay any tax,” says the proposed law, sponsored by Majority Leader Aden Duale on behalf of the Executive.

REMIT THE TAXES

The National Treasury Cabinet Secretary Henry Rotich had announced re-introduction of the tax when he read the Budget statement in early June. Some of the taxes on betting were repealed in 2000.

Bookmakers will have to remit the taxes to the Kenya Revenue Authority on the 20th day of every month.  

Companies that run lotteries will be required to hand over to the taxman five per cent of the money they collect. Those to be affected are the Kenya Charity Sweepstake and similar organisations where winners are determined by random drawing of numbers or tickets or dice, and where a promoter aims to collect more money than what is given out.

Such entities, too, will be required to hand over the money to the KRA on the 20th day of the month.

Casino operators, who are mostly involved in gaming, will be charged 12 per cent of their gross revenue, which they will also be required to hand over to the taxman on the same date monthly.

For prize competitions, the tax payable shall be 15 per cent of the gross turnover, based on the cost of entry.

The new law simplifies collection of the tax as it is based on revenues, with the money being paid directly to the Kenya Revenue Authority.