Sunday June 18 2017 In Summary Advertisement

As one of the strongest gambling markets in Africa, Kenya has attracted several investors, with some even expanding to international markets.

The passage of Finance Bill, 2017 with the Presidents recommendation to impose 35 per cent tax charge across the board might kill the local industry.

The current rates are 12 per cent, 5 per cent, 7.5 per cent and 15 per cent for casinos, lotteries, betting and prize competitions sub-sectors, respectively.

The new rate poses a negative trajectory in the sectors sustainability.

Businesses will toil more to meet the increased tax obligation while also paying 30 per cent corporation tax.

We have seen gaps in Cap 131 of the laws of Kenya.

The Finance Bill, with its numerous amendments, is not alive to the modern realities of gaming in the country.

We have also noted that 35 per cent tax is the highest on gambling. Uganda leads at 35 per cent roofed tax.

Gambling is a worldwide phenomenon. Its a form of business, entertainment and tourist attraction.

Any attempt by government to block people from taking part in this activity on the table will create a leeway for them to go underground, which is more harmful.

Of course consumer issues are very many and complex.

This is especially true in a developing country like ours, where we are yet to sort out the numerous legal and structural issues and where enforcement of laws is, at times, wanting.

Coupled with high unemployment, we certainly have a tough environment to manage.

Gaming or gambling cannot be an income-generating activity for the punters. It should be done for leisurejust like alcohol or such other consumption activities or products.

We should not kill an industry just because there are some elements in it that we dont like. We need to strike a balance. We obviously need to tax it, but do so unreasonably.

Much as we dont want the industry to die, however, we also wouldnt wish harm on the public. So we want to strike a middle ground.

Regulations or taxes to the industry should not end up killing investments in it or fail to leave room for others to join. Self-regulation will also not happen and may even hinder healthy competition.

This industry employs many people. Of late, some betting firms have invested in sports promotion.

Most players will be scared away and a number of Kenyans rendered jobless.

Our problem, therefore, lies in addressing the social problems emanating from gaming.

We foresee a situation where many operators close shop and venture into other, open prime markets.

The leisure of visiting casinos will die, depriving the Treasury of the much-needed tax revenues.

At the same time, banning activities in the industry would encourage illegal trade.

While we support the governments position to set up a fund from money earned through gaming taxes to fund youth projects, if the said taxes are set on the roof it will kill the industry instead.

Japheth Ogutu, Executive Director, Consumer Downtown Association (CDA), Nairobi.

Kikuyu MPKimani Ichungwasaid the regulation is irregular and illegal.

Mr Tuju last week called upon NCIC to bring Mr Odinga to book.

Read the original:

High tax on gambling will kill industry and render many jobless - Daily Nation