Betting winners slapped with 20pc tax
Gamblers will be subjected to a tax on their winnings as part of efforts to improve revenue collection from betting and gaming.
According to proposals in the Finance Bill, the treasury has slapped a 20 percent tax on winnings while betting and gaming companies will pay a further 15 percent.
Treasury Cabinet Secretary Henry Rotich says the simplification will relieve stress on betting companies while also ensuring that proceeds from betting are also taxed.
“It’s as simple as that. If you bet and win you will give the exchequer 20 percent. Say you win Ksh100, Ksh20 will be for the exchequer then the betting company also pays us separately at 15 percent,” Mr Rotich said.
Betting companies had opposed the 35 percent corporate tax passed during the last budget that saw most pull out of sponsorship commitments.
Mr Rotich said the new taxation framework would also enable the government raise funds to support sporting activities in the Country.
“All that money will go the sports fund and will cover sports, arts and culture and social development which includes healthcare,” he said.
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