Kenyan legislators reject tax hike

Legislators from Kenya decided to reject a proposal to increase betting taxes in the country.

Kenya.- Kenya’s parliament voted yesterday the measure that would’ve dramatically increased betting taxes from 7.5 percent of revenue to 50 percent. The measure was initially dedicated to generate more revenue.

Henry Rotich, Treasury Secretary, declared that the hikes were also meant to discourage gamblers from having problems. The Assembly’s Finance Committee established that the tax won’t be allowed as the number was high enough to discourage these activities. Yesterday, the MPs voted in favor to keep the 7.5 percent rate for betting operators, whilst the 50 percent will still be applied to gaming, lottery and other revenues. The legislators are set to discuss that number next week with the Treasury.

“The expansion of the industry has had negative social effects on society, especially on the youths and vulnerable members of the society,” said Treasury CS Henry Rotich when announcing the raise in March. According to The Star of Kenya, gaming taxes were set at 15 percent, whilst lottery was under a 12 percent and betting 7.5 percent. All of them were raised to 50 percent, and the money obtained will go directly to a sports fund to support the development of the market, culture and arts.