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The flat taxation treats the businesses the same regardless of their totally different models and price constructions, which the previous tax regime seems to have taken under consideration. Pambazuka National Lottery, as an example, final month suspended its operations and its affiliate sports activities betting agency SportPesa cancelled its Sh600 million annual funding to varied sports organisations. We simply don’t see how we will probably survive a tax of 35 per cent on gross revenue.
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The case comes after months of stress to reverse an order slashing gambling hours which was at one time rescinded by former board chairman Lucas Maitha earlier than being restored by BCLB director Amos Kwasi. He added that ought to casinos close up shop, the business will both go offshore or underground. Gross annual turnover of casinos in Kenya stands at an estimated $20 million , according to a report by advisory firm PricewaterhouseCoopers . Golden Key has annual gross revenue of roughly Sh200 million on which it used to pay a gaming tax of Sh24 million beneath the previous tax fee of 12 per cent of the turnover.
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