Excise Duty on Gambling Down to 12.5pc in Updated Finance Bill Proposal
The fierce opposition to greater levies for the gambling industry during the revision of the Finance Bill has led to the proposed betting taxes being revised. Kenya Gambling Excise Duty
The Finance Bill 2023 was formally presented in parliament on Tuesday according to the National Assembly Finance and Planning Committee’s timetable, which was finalized in Naivasha,
The National Assembly’s finance and national planning committee reported that more than 10 submissions were opposed to amending the definition of winnings, indicating that the inclusion of wagered amounts in the calculation of withholding tax was greeted with strong opposition during the filing of public comments.
Read Also: 87 More betting firms onboarded in New Kenya Revenue Authority System
Anjarwalla & Khanna, the Law Society of Kenya, PKF, Grant Thornton, the Institute of Public Finance, the Kenya Private Sector Alliance, and the American Chamber of Commerce were among the organizations that opposed the revised definition in addition to the Association of Gaming Operators of Kenya.
As a result, the finance committee changed the suggested increase in the excise duty on gambling from the previously recommended rate of 20 percent to a rate of 12.5%. The duty has therefore increased by 5% from the prior rate of 7.5% on the same tax.
If the proposed changes are approved by the House, the tax rate on the amount wagered will be 12.5 percent, or Sh12.50 for every Sh100 staked.
Furthermore, the wagered amounts will not be included in taxing winnings. According to the group of gambling operators, treating bet amounts as gains would result in double taxation.
Amending definition of winnings will discourage punters for it is double taxation as the stake is already being charged with excise tax.
it said.
With the tax appeals tribunal having already issued a judgement in favor of separating wagered amounts from winnings, MPs will be protecting themselves against prospective lawsuit by eliminating the provision on the definition of winnings.
However, the proposal to shield gaming companies from the 24-hour excise duty and withholding tax submission deadline was rejected.
Latest Posts:
- 6 reasons Rome will shine as SiGMA Central Europe’s host city
- SOFTSWISS Deepens Safer Play as Platinum Partner of Responsible Gambling Summit 2025
- LuÃs Figo Moderated Digitain’s First Podcast Episode
- Ready, set, win: The 1win Traffic Race has begun!
- Building Trust Through Technology: Udukheli Izebuno on the Enugu Gaming Monitoring System
Check out the latest news here and you are welcome to join our super exclusive iGaming Afrika Telegram Group for all the latest and breaking news in the African Gambling industry. We would also like to hear from you, Message us on Telegram here or write to editor@igamingafrika.com Kenya Gambling Excise Duty
