NAIROBI, Kenya, July 18 – Betting taxes collected by the Kenya Revenue Authority (KRA) from betting firms grew 30 percent to Sh15.1 billion in the last financial year ending this year after the taxman linked the latter into its system.
Taxes were in the form of excise on betting and withholding on winnings.
While excise duty on betting rose 116.2 percent to Sh6.64 billion, withholding tax from winnings jumped to Sh8.6 billion.
KRA attributes its high revenue collection to the integration of betting companies into its tax system.
In mid-October 2022, integration of betting companies into KRA’s system started, targeting daily collection of the 7.5 percent excise duty on stakes and the 20 percent withholding tax on winnings from the companies.
The initiative was in line with KRA’s commitment to streamline tax remittances from the sector with the aim of scaling up revenue mobilization and collection.
So far, KRA has integrated 36 companies, which contributed to the revenue growth in the sector.
KRA has commenced the integration of the final 87 betting firms into the system.
“Other initiatives under the tax-at-source programme include the Electronic Tax Invoice Management System (eTIMS), which has minimised VAT fraud and enhanced tax revenue,” KRA said in a statement.
“A total of 95,732 VAT-registered taxpayers were onboarded, which led to remittances of Kshs 272. 365 Billion,” it added.
“Revenue performance is projected to improve considerably upon enhanced uptake of eTIMS. The system is also anticipated to achieve simplified return filing through prepopulated VAT returns.”
