In Kenya, a parliamentary committee has reportedly approved legislation that would institute a 10% tax on winnings from lottery and sports wagers while conversely cutting operator revenue duties by over half to 15%.
According to a Sunday report from the Business Daily Africa newspaper, the Finance and National Planning Committee endorsed the changes contained in the proposed Tax Laws (Amendment) Bill 2018 following a plea from The National Treasury with the proposed legislation now due to be put to a vote before the full National Assembly.
If subsequently ratified by the 349-seat body, the Tax Laws (Amendment) Bill 2018 would reportedly require gaming and betting firms in Kenya to begin withholding 10% of all player winnings before turning them over to the government while decreasing operator revenue duties from 35% to 15%.
The newspaper reported that the Finance and National Planning Committee is charged with reviewing all tax amendments in the East African nation and had endorsed the changes despite objections from the Labour and Social Welfare Committee and its own suggestion that the tax on winnings be set at 20%.
“To be able to increase the tax base to also include winnings that form approximately 88% of all the revenues generated from these activities and because this is the first time taxation is being introduced, the [Finance and National Planning] Committee was of the view that 20% is too high and hence the adoption of 10% for both residents and non-residents,” reportedly read a statement from Joseph Limo, Chair for the Finance and National Planning Committee.
Business Daily Africa reported that the successful passage of the Tax Laws (Amendment) Bill 2018 would be a boon for local gaming and sportsbetting operators as it would moreover cut from 25% to 5% the amount that firms would be required to hand over in order to support social and charitable causes while furthermore maintaining the current corporate tax rate of 30%.