National Treasury and Planning Cabinet Secretary Ukur Yatani has proposed the re-introduction of 20% excise duty on amount wagered, to curb betting.
Reading the 2021/22 budget in parliament on Thursday, CS Yatani stated that betting had become widespread in the country.
"Betting has become widespread resulting in negative social effects. I propose to re-introduce excuse duty on betting at the rate of 20% of the amount wagered," CS Yatani.
The tax was introduced in 2019 but was removed in July 2020 through amendments to the Finance Act 2020 following lobbying by betting firms.
If enacted into law, the Kenya Revenue Authority (KRA) will take Sh20 out of every Sh100 wagered regardless of whether the punter wins or loses.
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It will expand the list of taxes levied on the betting industry and punters.
Betting firms are currently required to withhold 20 percent of winnings and remit the same to the taxman. In such a case, if one wins Sh20,000, he or she will receive Sh16,000 as the KRA takes Sh4,000.
Other highlights of the budget include:
1. Government set aside Ksh142.1B in the financial year 2021/2022 to support the implementation of the Big Four agenda.
2. Around Ksh3.2 billion was allocated to DPP, DCI Ksh7.6 billion, Ksh5.9 billion Auditor General as Parliament gets Ksh37.9 billion to enhance graft war.
3. There was a boost for Sports as CS Yattani allocates Ksh15bn to Sports Fund and Sh90mn for the refurbishment of regional stadia.
Read Also: Highlights Of CS Yattani's Budget 2021/2022
