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Kepsa Slams Government Over Proposed Excise Duty on Sports Betting

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Nyakundi Report

Newsroom 1 min read

This archive report was first published on 21 August 2019.

On August 21, 2019, the Kenya Private Sector Alliance (Kepsa) joined the chorus of voices calling for the exemption of bettors from excise duty, citing the practice as a form of double taxation.

The Treasury had introduced a 10% excise tax on the amount wagered through the Finance Bill 2019, as part of measures to finance its Sh3.1 trillion budget.

According to Habil Olaka, Kepsa's public finance sector director, the new measures are both punitive and unfair.

Speaking during public hearings on the Finance Bill at the National Assembly Finance committee, Olaka proposed a zero percent tax on the amount wagered, as players already pay a 20% withholding tax on their winnings.

Players of sports betting are already subject to a 20% withholding tax on their winnings, and betting firm Betika has started deducting 20% on customer winnings in compliance with a Kenya Revenue Authority directive.

Interior Secretary Fred Matiang'i had earlier announced the enactment of tough laws aimed at curbing rampant betting across the country in April.

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