Kenyan bettors were left scratching their heads after Treasury announced plans to have betting stakes taxed at 20 percent excise duty.
The move by Treasury will no doubt ignite tough debate between Parliament, betting companies and Kenyan bettors.
The Treasury led by Cabinet Secretary Ukur Yatani is not very happy that bettors are only taxed 7.5 percent for the amount staked as excise duty – and has vowed to have it returned t0 the original 20 percent.
Yatani will remember that Parliament rejected his proposal of a 20 percent excise tax on betting stakes in June arguing that the tax on betting is too punitive and has put off investors.
Debts they cannot pay
Yatani, however, maintains that the move to lower taxes to 7.5 percent has encouraged betting among youths leading many to incur mobile loan debts that they cannot pay hence sinking in debts and depression.
“We are not very happy with what Parliament did. Parliament in its own wisdom rejected the 20 percent but we will make another attempt through the Finance Bill,” Mr Yatani said referring to changes contained in the Finance Act, 2021 that came into force on July 1.
This is hypocrisy
Henry Koech – a bettor – said Treasury is being dishonest.
“Truth of the matter is that Treasury and the Kenya Revenue Authority are keen to raise more money from the multi-billion industry. This push to have 20 percent taxation has nothing to do with youths getting lost. No one at the treasury is losing sleep just because Kenyan youths are betting. They should lose sleep that politicians are looting, hunger and famine and corruption. Not betting,” said Koech.
The tax which was introduced in 2019 was removed in July 2020 following lobbying by betting firms.