Punters sue over tax on bets
A sports enthusiast holds a betting slip at a sports betting shop on July 15, 2019 in Nairobi. Four gamblers want the tax on stakes suspended. PHOTO | SIMON MAINA | AFP
What you need to know:
- Justice Weldon Korir declined to suspend the law, which was passed under the Finance Act, 2019.
Four betting enthusiasts have moved to court to challenge a 20 percent excise duty imposed on all stakes placed by punters.
The five - Eugene Mwanje, Robert Opana, Dennis Kimari and Moses Muiruri - accused the National Assembly of unilaterally increasing the excise duty on stakes placed by the punters from 10 percent to 20 percent without public participation.
However, Justice Weldon Korir declined to suspend the law, which was passed under the Finance Act, 2019.
He directed all the parties, including the Attorney General, Finance Secretary and Kenya Revenue Authority (KRA), to file their responses and submissions, ahead of the hearing on March 20.
The amendments contained in the Finance Act 2019 added a paragraph made “winnings” a taxable income. It also introduced an excise duty of 20 percent on the stakes placed by punters.
Lawyer Dennis Mare told the court that KRA had already notified licensed bookmakers of intentions to effect the Act by directing deductions on all stakes placed to them.
The duty should then be remitted to the Commissioner of domestic Taxes on or before the 20th day of the following month.
