In a surprise move, the National Assembly has approved a sweeping cut to the excise duty on betting stakes<\/strong>, slashing it from 15 per cent to just 5 per cent. But there\u2019s a catch: the tax will now be applied when money is transferred into a betting company\u2019s wallet<\/strong>, not when a bet is placed.<\/p>\n\n\n\n \u201cWhen you are placing a bet as it is now, the current taxation regime is say you have money on your Airtel or M-Pesa account, and then you transfer that money to the wallet of the betting company. The time of charging of excise duty is when you place a bet,\u201d said Kimani Kuria<\/strong>, Chair of the National Assembly\u2019s Finance Committee, according to The Kenyan Wall Street publication.<\/p>\n\n\n\n \u201cNow, we are changing that to making the excise duty payable when you transfer money from your mobile wallet to the betting company wallet\u2026 that\u2019s the time when excise duty is paid.\u201d<\/p>\n\n\n\n This change is designed to close loopholes exploited by offshore betting firms<\/strong> operating virtually in Kenya\u2019s booming gambling market. By shifting the tax point to the moment of mobile money transfer<\/strong>, authorities hope to ensure compliance across both local and foreign platforms.<\/p>\n\n\n\n But betting isn\u2019t the only sector under the microscope. The Finance Bill also introduces stiffer rules for importers in a bid to stem the tide of tax evasion <\/strong>and protect consumers from substandard goods. Kuria highlighted widespread abuse of tax exemptions by traders who falsely declare finished goods as raw materials, particularly in sectors like edible oils.<\/p>\n\n\n\n Under the new rules, importers will be required to present certificates of origin from credible institutions, disclosing full cargo details at the point of entry, a move aimed at both curbing revenue leaks and raising product standards.<\/p>\n\n\n\n Meanwhile, in a win for devolved units, the Mediation Committee on the Division of Revenue Bill <\/strong>has agreed to allocate KSh415 billion ($3.22bn) to counties in the upcoming fiscal year – a 4.8 per cent boost from the National Treasury\u2019s original proposal and a significant KSh27.6 billion ($3bn) increase from the current year\u2019s figure.<\/p>\n\n\nNot only gambling sector<\/h2>\n\n\n\n
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