“The First Schedule to the Excise Duty Act, 2015 is amended … in Part II (on excisable services) by deleting the expression ‘seven-point five percent’… and substituting therefor the expression ‘twenty percent’,” Mr Yatani wrote in the Finance Bill 2022.
This is the second year in a row that the Treasury is seeking to return the 20 percent duty on the amount staked after MPs shot down a similar bid in the Finance Bill 2021, and reduced the duty to 7.5 percent.
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The proposed 20 percent tax will apply from July 1 if passed by the MPs before the House breaks on June 9 ahead of the August elections.
Gamblers also pay a 20 percent tax on winnings that betting firms are required to withhold and remit to the taxman. This means that if one wins Sh10,000, he or she will receive Sh8,000 as the KRA takes Sh2,000.
This is besides corporate income taxes levied on the gambling and gaming business. The betting industry has become one of the targets for ‘sin’ taxes which the government levies on goods and services considered harmful, costly to the society or morally suspect.