The National Assembly Departmental Committee on Finance and National Planning have agreed to remove the excise duty on betting. This is to reverse the negative effects the tax has brought to the industry which led to the closure of betting companies in Kenya, yet international players continue to operate.
The Kenya Revenue Authority (KRA) had ordered gaming companies to start submitting the revenue collected from the 20pc excise tax deducted from stakes placed by punters leading to an uproar and closure of many betting sites.
“All stakes placed on bookmakers shall attract excise duty at the rate of 20pc which shall be charged at the time of staking and remitted to the Commissioner of Domestic Taxes on or before the 20th day of the following month,” SternKRA wrote to to gaming companies.
The National Assembly has also opposed new proposed pension taxes. The finance bill had proposed the removal of the existing tax incentive, that is, income exempt from tax; income of National Social Security Fund (NSSF) and bonus, overtime, and retirement benefits not exceeding 10pc.
Following consultation with the National Treasury, The National Assembly Departmental Committee on Finance and National Planning in their submission in a report on the Consideration of the Finance Bill via Chairman, Joseph Limo while presenting the bill for the second reading revealed that the proposal to tax retirement benefits had been dropped.
In addition, the committee also stated that liquefied petroleum gas (LPG) and propane should not be taxed because imposing VAT on LPG will adversely affect Kenya’s aspired socio-economic transformation.
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