The State is preparing two new taxes for betting companies, intensifying its assault on the multi-billion shilling business whose expansion seems to defy high taxes. New Gambling Taxes Kenya
The BCLB has suggested a gambling tax that would be imposed at a rate of 15% of a betting firm’s gross gaming revenue and an additional 1% monthly fee on the same revenue.
Currently, betting companies pay a 15% tax on their gross gaming revenue, which is turnover less winnings paid out. Additionally, they pay a 30 percent corporate tax on profits.
According to the gambling regulator, the new taxes included in the Gambling Control Bill, of 2023, would be used to establish rehabilitation facilities and raise awareness of the harmful impacts of the gambling craze, which has now become a source of income for unemployed Kenyans.
The BCLB draft bill, which must be made available for public review before being presented to Parliament, states that “there shall be a tax to be known as gambling tax chargeable at a rate of fifteen percent of the gross gambling revenue.”
According to BCLB, the betting firms must transfer the funds from the two taxes no later than the 20th day of the following month.
Betting firms, who have recently filed numerous petitions to Parliament requesting that the Treasury decrease its high taxes, are likely to vigorously oppose the plan.
Kenya already has some of the highest betting tax rates in the world, and the parliament has recently issued warnings that the rising taxes could scare away investors and undermine the KRA’s revenue collection. New Gambling Taxes Kenya