Sunday June 18 2017 In Summary Advertisement <\/p>\n
As one of the strongest gambling markets in Africa, Kenya has attracted several investors, with some even expanding to international markets. <\/p>\n
The passage of Finance Bill, 2017 with the Presidents recommendation to impose 35 per cent tax charge across the board might kill the local industry. <\/p>\n
The current rates are 12 per cent, 5 per cent, 7.5 per cent and 15 per cent for casinos, lotteries, betting and prize competitions sub-sectors, respectively. <\/p>\n
The new rate poses a negative trajectory in the sectors sustainability. <\/p>\n
Businesses will toil more to meet the increased tax obligation while also paying 30 per cent corporation tax. <\/p>\n
We have seen gaps in Cap 131 of the laws of Kenya. <\/p>\n
The Finance Bill, with its numerous amendments, is not alive to the modern realities of gaming in the country. <\/p>\n
We have also noted that 35 per cent tax is the highest on gambling. Uganda leads at 35 per cent roofed tax. <\/p>\n
Gambling is a worldwide phenomenon. Its a form of business, entertainment and tourist attraction. <\/p>\n
Any attempt by government to block people from taking part in this activity on the table will create a leeway for them to go underground, which is more harmful. <\/p>\n
Of course consumer issues are very many and complex. <\/p>\n
This is especially true in a developing country like ours, where we are yet to sort out the numerous legal and structural issues and where enforcement of laws is, at times, wanting. <\/p>\n
Coupled with high unemployment, we certainly have a tough environment to manage. <\/p>\n
Gaming or gambling cannot be an income-generating activity for the punters. It should be done for leisurejust like alcohol or such other consumption activities or products. <\/p>\n
We should not kill an industry just because there are some elements in it that we dont like. We need to strike a balance. We obviously need to tax it, but do so unreasonably. <\/p>\n
Much as we dont want the industry to die, however, we also wouldnt wish harm on the public. So we want to strike a middle ground. <\/p>\n
Regulations or taxes to the industry should not end up killing investments in it or fail to leave room for others to join. Self-regulation will also not happen and may even hinder healthy competition. <\/p>\n
This industry employs many people. Of late, some betting firms have invested in sports promotion. <\/p>\n
Most players will be scared away and a number of Kenyans rendered jobless. <\/p>\n
Our problem, therefore, lies in addressing the social problems emanating from gaming. <\/p>\n
We foresee a situation where many operators close shop and venture into other, open prime markets. <\/p>\n
The leisure of visiting casinos will die, depriving the Treasury of the much-needed tax revenues. <\/p>\n
At the same time, banning activities in the industry would encourage illegal trade. <\/p>\n
While we support the governments position to set up a fund from money earned through gaming taxes to fund youth projects, if the said taxes are set on the roof it will kill the industry instead. <\/p>\n
Japheth Ogutu, Executive Director, Consumer Downtown Association (CDA), Nairobi. <\/p>\n
Kikuyu MPKimani Ichungwasaid the regulation is irregular and illegal. <\/p>\n
Mr Tuju last week called upon NCIC to bring Mr Odinga to book. <\/p>\n
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Read the original:<\/p>\n
High tax on gambling will kill industry and render many jobless - Daily Nation<\/a><\/p>\n","protected":false},"excerpt":{"rendered":" Sunday June 18 2017 In Summary Advertisement As one of the strongest gambling markets in Africa, Kenya has attracted several investors, with some even expanding to international markets. Continue reading