Government blasted over increased taxation on betting firms
What you need to know:
- Stakeholders have come out to condemn the government’s proposal to increase taxation on betting companies to 50 percent.
- This comes hot on the heels of a scathing attack directed to betting firms by Sports and Culture Cabinet Secretary Hassan Wario regarding the proposal to raise betting tax.
- Speaking in Nyeri on Sunday, Wario said that local sports teams stand to lose nothing from the increase in tax since the government is willing and able to sponsor all local leagues through the Ministry of sports.
Stakeholders have come out to condemn the government’s proposal to increase taxation on betting companies to 50 percent.
This comes hot on the heels of a scathing attack directed to betting firms by Sports and Culture Cabinet Secretary Hassan Wario regarding the proposal to raise betting tax.
Speaking in Nyeri on Sunday, Wario said that local sports teams stand to lose nothing from the increase in tax since the government is willing and able to sponsor all local leagues through the Ministry of sports.
“You (betting companies) are making billions of shillings and throwing little money around and you are telling us not to tax you. We are going to tax you for as long as you are in Kenya."
Kenyan Premier League chief executive officer Ambrose Rachier says that betting companies have come to the financial rescue of a number of local football clubs, and has urged the government to rethink the proposal for the benefit of the game.
“It is true that betting companies have grown exponentially in the last three years, but they have also helped so many clubs financially. The local league is sponsored by a betting company, and four other premier league clubs and one from the lower division continue to receive financial support from these same companies. “It is time to rethink the proposal tabled during the budget reading because that increase in tax is detrimental and could have devastating effects on the industry,” he said.
Rachier was speaking last Friday during the launch of a Sh50 Million shirt sponsorship deal between SPL team Sofapaka and local betting company Betika. During the event, Sofapaka chairman Elly Kalekwa weighed in on the matter and asked the Executive not to accede to the proposal.
“That proposal to raise betting tax is almost 600 per cent increase in the current situation. This can actually kill the entire industry, yet these betting companies have ad continue to do so much for local sports. I urge the people responsible to reject this proposal for the good of the industry,” the Congolese oligarch said.
