Kenyan parliament throws out gambling tax reduction

MPs in Kenya have dismissed proposals to reduce the tax on gaming from 35% to 15%, despite mounting pressure from operators.

Measures to reduce the tax were proposed by the National Finance and Planning committee which sought to amend the law by including it in the Finance Bill 2018.

In addition to this proposed reduction, the committee wanted to introduce a concurrent reduction of the amount paid to social causes in Kenya from 25% to 5%. After being approved by the committee, the proposals were passed to Parliament to be debated, before being put to a final vote.

However, Kenyan MPs roundly rejected both proposals, with MP Kubai Iringo saying Parliament should not increase the prices of food and other items while at the same time reducing taxation on gambling.

Iringo added: “It will be a big shame to the House that when countries like Italy have banned advertisement on gaming and lotteries, we are legislating to reduce taxes. Gaming and gambling is killing our children,”

Instead of reducing the 35% tax rate, Mvita MP Abdulswamad Nassir instead called for its increase as a way of discouraging problem gambling. Nassir added, “We have been taxing basic commodities that matter to the lives of Kenyans and not what is killing our people.”

Murang’a Women’s Representative Sabina Chege also vociferously railed against proposals calling the attempt by the committee “a mockery and a shame to this House. Many people have been committing suicide, our children are not going to school and our people have refused to work. I oppose this amendment,”

This is the second time that MPs have chosen not to follow up on committee proposals, with a similar effort to reduce taxation on gambling, but this time in the Tax Laws (Amendment) Bill 2018 scrapped by the committee prior to a debate in the house following hostility by fellow MPs.

No comment has been made by the finance committee following this latest defeat.