Six MPs oppose move to cut betting tax

A betting shop in Nairobi. FILE PHOTO | NMG 

Six MPs have opposed the planned reduction of tax on betting firms from 35 per cent to 15 per cent.

They accused unnamed cartels in and outside Parliament for being behind the move.

The MPs asked Leader of Majority Aden Duale to drop the amendment, failing which they will introduce further changes to push the tax to 50 per cent.

The proposed lower rate is contained in the Statute Law (Miscellaneous Amendments) Bill, 2018, tabled in Parliament last Thursday by Mr Duale.

“The Bill seeks to amend the Act (Betting, Lotteries and Gaming Act) to reduce the amount of betting and lottery tax payable by operators,” reads the Bill.

Tindi Mwale (Butere), Elisha Odhiambo (Gem), Godfrey Otsotsi (Nominated), Antony Aluoch (Mathare), Musili Mawathe (Embakasi East) and Raphael Wanjala (Budalangi) opposed the changes at a press conference at Parliament Wednesday evening.

Mr Mwale said he has intelligence and evidence of a meeting that took place in London where a decision was reached to approach the Kenyan parliament to lobby MPs to reduce the tax to 15 per cent.

READ: Betting tax cut by more than half to 15 per cent

ALSO READ: Treasury hits gamblers with 20pc winning tax

Cartels

“The amendment is being sponsored by cartels including betting companies,” Mr Mwale said.

The tax cut proposal, if approved by Parliament, will be a boon to betting firms that opposed the new tax that took effect on January 1.

The firms reckon that the high taxes will hurt their business and create a black market for betting.

Besides the 35 per cent tax on revenues, betting firms pay 30 per cent corporate tax and dedicate 25 per cent of their sales to social causes like sports sponsorship as a legal requirement.

READ: Smartphones, betting step up data market war

Social causes

The new Bill has also cut the share of sales meant for social causes and charity from 25 per cent of sales to at least five per cent, further relief to gaming firms.

“We will protect the interest of Kenyans. I advise Mr Duale to tell cartels the truth and not waste his time bringing that drop in betting tax.

"We will lobby to shoot down that Bill. We will not allow betting firms to use any cartel in the National Assembly to use the floor of the House to rubber stamp the reduction of betting tax,” Mr Mwale said.

He claimed that Mr Duale is being pushed by cartels to introduce changes to the betting tax and warned that the move will not happen under their watch.

Poor Kenyans

“We want to push tax on betting from 35 to 50 per cent because they are ripping off our poor young Kenyans and repatriating [the money] overseas,” Mr Otsotsi said.

Mr Otsotsi said the move to cut the tax is extraordinary because the Treasury has never effected such a huge reduction on tax since independence.

“We need to finance mega projects and its unusual that at time when ordinary citizens are being taxed heavily over common items and products like food, the betting firms are receiving a 20 per cent tax cut,” Mr Odhiambo said.

He said laws cannot be changed for expediency when the government is gearing to roll out the Big Four plan of housing, manufacturing, universal healthcare and food security.

“It beats prudence to reduce tax on betting at the time the country wants to implement mega projects. It means ordinary Kenyans will be taxed more to plug the reduction in order to finance the Big Four plan, Mr Odhiambo said.

Six MPs have opposed the planned reduction of tax on betting firms from 35 per cent to 15 per cent.

They accused unnamed cartels in and outside Parliament for being behind the move.

The MPs asked Leader of Majority Aden Duale to drop the amendment, failing which they will introduce further changes to push the tax to 50 per cent.

The proposed lower rate is contained in the Statute Law (Miscellaneous Amendments) Bill, 2018, tabled in Parliament last Thursday by Mr Duale.

“The Bill seeks to amend the Act (Betting, Lotteries and Gaming Act) to reduce the amount of betting and lottery tax payable by operators,” reads the Bill.

Tindi Mwale (Butere), Elisha Odhiambo (Gem), Godfrey Otsotsi (Nominated), Antony Aluoch (Mathare), Musili Mawathe (Embakasi East) and Raphael Wanjala (Budalangi) opposed the changes at a press conference at Parliament Wednesday evening.

Mr Mwale said he has intelligence and evidence of a meeting that took place in London where a decision was reached to approach the Kenyan parliament to lobby MPs to reduce the tax to 15 per cent.

READ: Betting tax cut by more than half to 15 per cent

ALSO READ: Treasury hits gamblers with 20pc winning tax

Cartels

“The amendment is being sponsored by cartels including betting companies,” Mr Mwale said.

The tax cut proposal, if approved by Parliament, will be a boon to betting firms that opposed the new tax that took effect on January 1.

The firms reckon that the high taxes will hurt their business and create a black market for betting.

Besides the 35 per cent tax on revenues, betting firms pay 30 per cent corporate tax and dedicate 25 per cent of their sales to social causes like sports sponsorship as a legal requirement.

READ: Smartphones, betting step up data market war

Social causes

The new Bill has also cut the share of sales meant for social causes and charity from 25 per cent of sales to at least five per cent, further relief to gaming firms.

“We will protect the interest of Kenyans. I advise Mr Duale to tell cartels the truth and not waste his time bringing that drop in betting tax.

"We will lobby to shoot down that Bill. We will not allow betting firms to use any cartel in the National Assembly to use the floor of the House to rubber stamp the reduction of betting tax,” Mr Mwale said.

He claimed that Mr Duale is being pushed by cartels to introduce changes to the betting tax and warned that the move will not happen under their watch.

Poor Kenyans

“We want to push tax on betting from 35 to 50 per cent because they are ripping off our poor young Kenyans and repatriating [the money] overseas,” Mr Otsotsi said.

Mr Otsotsi said the move to cut the tax is extraordinary because the Treasury has never effected such a huge reduction on tax since independence.

“We need to finance mega projects and its unusual that at time when ordinary citizens are being taxed heavily over common items and products like food, the betting firms are receiving a 20 per cent tax cut,” Mr Odhiambo said.

He said laws cannot be changed for expediency when the government is gearing to roll out the Big Four plan of housing, manufacturing, universal healthcare and food security.

“It beats prudence to reduce tax on betting at the time the country wants to implement mega projects. It means ordinary Kenyans will be taxed more to plug the reduction in order to finance the Big Four plan, Mr Odhiambo said.