Treasury Cabinet Secretary Njuguna Ndung’u has proposed to increase the taxes on betting, gaming, prize competition, lotteries and alcohol in his budget speech for the fiscal year 2022/23.
Ndung’u said that these activities are addictive and have negative socioeconomic effects on the society, especially the youth and families. He said that the higher taxes would discourage participation and consumption of these products and services.
Reading the budget on Thursday in parliament, the CS proposed to raise the excise duty on betting, gaming, prize competition and lotteries from 7.5 percent to 12.5 percent of the gross gaming revenue.
He also proposed to introduce a new excise duty of 15 percent of the excisable value on fees charged on advertisements promoting these activities, as well as alcohol, on all media platforms.
“In order to discourage these activities and consumption of alcoholic beverages, I propose to the National Assembly to introduce excise duty at the rate of 15 percent of the excisable value on fees charged on the advertisements by all televisions, print media, billboards, and radio stations in promotion of alcohol, betting, gaming, lottery and prize competition,” he said.
The CS also proposed to amend the Excise Duty Act to require betting and gaming companies to remit the excise duty to the Kenya Revenue Authority (KRA) within 24 hours after closure of transactions, instead of waiting for 20 days as currently provided.
He further proposed to amend the Betting, Gaming and Lotteries Act to allow KRA to apply the provisions of the Tax Procedures Act in enforcing tax collection from these activities.
Ndung’u said that these measures are aimed at enhancing revenue mobilization and protecting the public from harmful products and services.