Lobby petitions president on higher taxation

NAIROBI, KENYA: A consumer lobby organization has asked President Kenyatta to lower the 35 per cent tax imposed on the gaming industry as contained in the Finance Act, 2017, which the Head of State has already assented to.

In a petition presented on Thursday to the office of the President, Consumer Downtown Association (CDA) executive director Japheth Ogutu, expressed fear that the new will kill the industry.

Ogutu also explained that the move has increased the tax burden to ordinary consumers subscribed to the products and services in the sector.

He said the State should adequately consult with all stakeholders before implementing the law, saying their input was left out. “We are of the view that this law did not reflect the stakeholders’ inputs as earlier submitted to the Parliamentary Finance Committee,” said Ogutu in the petition.

He accused the State of bias in implementation of the law which could lead to adverse consequences to the entire gaming sector. “The 35 percent tax across board sends the industry to its berth death, the law is bent on one side and meant to address one side of exchequer not withstanding enabling environment within which such revenue will be sustained,” he pointed out.

The lobby group claims that the 35 per cent tax across board on lotteries, casinos, sports betting and Competition was ill advised and a case of total misinformation that could lead to the collapse of an entire industry.

The association also blamed the industry’s woes on parliament for failure to scrutinize bill before it was passed into law.