This archive report was first published on 2 July 2020.
On July 2, 2020, the National Treasury and Planning Cabinet Secretary Ukur Yatani announced plans to reintroduce excise duty on betting within the next six months.
According to Yatani, the government is committed to mitigating the social vices associated with betting activities, and the reintroduction of the duty will be beneficial to young people who will be rechanneling their energy into legal ventures.
Yatani noted that the move will be proposed to the National Assembly, and if successful, the taxation may be felt in 2021 once backed by legislation.
It's worth noting that the excise duty on betting had been expunged after the enactment of Finance Act 2020, but the government plans to reinstate it.
Previously, the government introduced a 15 per cent betting tax on companies and a 20 per cent withholding tax on winnings in 2018, followed by a 20 per cent excise duty on amounts staked during betting.
However, betting companies opposed the move, considering the excise duty too high and resulting in losses.
