Revenue collection in the betting and gaming sector has registered a significant growth after Kenya Revenue Authority (KRA) collected over kshs 15.1 Billion from Excise on Betting and Withholding Tax on Winnings from the betting sector.
The revenue collection reflects a growth of 23.9% from the tax heads, compared to the same period in the financial year 2021.
Against the target of 5.715 Billion, KRA managed to collect a total of 6.64 Billion in Excise Duty from the sector. This reflects a surplus of ksh 925 million and also a 30% growth in Excise Duty compared to the same period in FY 2021/2022.
The Withholding Tax from winnings netted Ksh 8.601 Billion. This reflects a growth of 21.1% compared to the same period in the last financial year. Similarly betting recorded a 14.7% growth after KRA collected ksh 3.874 Billion.
The performance is attributed to the integration of betting companies into the KRA tax system. It began in mid-October, targeting daily collection of the 7.5 percent Excise Duty on stakes and the 20 percent Withholding Tax on winnings from the companies.
Currently, KRA has integrated 36 companies and it is the drive to integrate 87 more betting firms into the system. The initiative is in line with Kras’s commitment to streamline tax remittance from the sector, with the aim of scaling up revenue mobilization and collection.
The integration began in mid-October 2022, targeting the daily collection of the 7.5 percent Excise Duty on stakes and the 20 percent Withholding Tax on winnings from the companies. The initiative is in line with KRA’s commitment to streamline tax remittances from the sector, with the aim of scaling up revenue mobilization and collection.
With the use of the program, KRA has been able to significantly improve the tax administrative procedures in the betting and gambling sector, and the daily visibility of firms has contributed to recognizing trends that are used to guide compliance actions.
Additionally, the integration has made data on betting and gaming transactions easily accessible, making it easier for taxpayers to verify their daily payments. The integration is a part of KRA’s efforts to adopt tax-at-source. An international trend known as “tax-at-source” is replacing the customary tax self-assessment. With the help of this idea, real-time tax data and revenue can be collected right at the source of income.
Subscribe to our channel on Telegram here for timely live updates on all happenings in the iGaming space in Africa. You may also join our group on Telegram here and grow your networks by interacting with all players in the iGaming sector in Africa