Respite for casinos over tax rule
Casinos will not be taxed.
The clause in the Nairobi County Betting, Lotteries and Gaming Bill, which introduced a 12 per cent tax has been scrapped, albeit temporarily.
The reprieve could be short-lived as the same clause could be reintroduced as an amendment.
According to recommendations by the Committee for Culture and Community Services to the Nairobi Assembly, consultations will first be sought before provisions of clause 12 are brought back.
“Stakeholders are in talks with the executive on the way forward so the clause will be deleted in the meantime.
However an amendment will be brought once a way forward is agreed on,” the report by the committee read. Several key industry players had stated that the tax would amount to usurping the functions of the national government to levy income tax.
According to Safaricom, winnings have been interpreted by the national government as income, meaning any tax levied on the same was Income Tax, which only the national government could impose.
The mobile network provider had written to the National Assembly seeking to put a lid on the clause over what they termed as an inconsistency with the national law.