By Ebi Kesiena
In a bid to keep the betting industry in check, the government has introduced stringent measures that mandate betting companies to remit taxes to the state on a daily basis before 1am.
According to Treasury Principal Secretary, Chris Kiptoo this will be facilitated through the Kenya Revenue Authority (KRA) which has integrated its tax system with the betting sector’s platforms.
‘‘This allows for real-time computation of taxes including the 15% tax on betting, gaming, and lottery and the 20% withholding tax on winnings paid out to customers’’ he said.
Explaining further, Kiptoo noted that this integration is a key aspect of the revenue administration’s ongoing reforms.
‘’Kenya Treasury has set a target to generate KES 15 billion from the betting sector in the current year. As a result, KRA aims to collect KES 41.1 million from betting firms on a daily basis.
‘‘Before, taxes were paid after 30 days, but now, betting companies are required to pay taxes every day by 1am, when many people stop betting. This is part of KRA’s new strategy to increase tax compliance and collect more revenue from the betting industry.
‘‘After a successful pilot with some betting firms, KRA has requested that seven other firms also connect their systems. Those that fail to comply with this request have been warned that they may face shutdown’’ he stated.
Also, data from the KRA indicates that the government has reintroduced a 7.5 percent tax on every betting stake, meaning for every KES 100 staked, the KRA collects KES 7.5. Tax on gross gaming revenue rose 13 percent to KES 3.294 billion in the year ended June from KES 2.907 billion a year earlier.
