Gambling in Kenya has been turned by some people as a full time job. The number of betting shops and centers are increasing each and everyday. Betting companies have also used this opportunity to flourish their businesses.
But KRA has stroked its wrath on the Betting and Gambling sector.
KRA has set its focus on gamblers and mobile money users with plans to introduce new taxes in July after falling Sh53 billion short of the half-year target.
KRA commissioner-general John Njiraini Tuesday said it is proposing to introduce a 10 percent excise duty on betting in the forthcoming national budget.
Mobile phone-based payments are set to come under the taxman’s radar and will be included in an expanded list of transactions that require personal identification numbers (PINs).
Mr Njiraini said KRA has projected that it will miss the annual tax collection target set by the Treasury by Sh110 billion by the end of June.
Taxpayers will therefore be required to dig deeper into their pockets to finance government operations, the taxman said.
Receipts from taxes, levies, earnings from investments, rental income and fines – technically referred to as ordinary revenue – amounted to Sh722.28 billion in the first six months of the financial year against a target of Sh774.99 billion, latest Treasury statistics show.
The ordinary revenues in the July-December 2018 period were, however, Sh65.39 billion or 9.95 percent more than Sh656.90 billion in the corresponding period a year earlier, which was clouded by a bruising presidential poll contest.
Mr Njiraini said KRA is also targeting tax collections from economic activities carried out over digital platforms.
“Most transactions are moving towards digital platform and the current legislation doesn’t exclude this but needs clarification on how those transactions can be subjected to tax. We want to ensure we capture this sector and expand the tax base,” said Mr Njiraini.
Professional bodies, including Law Society of Kenya, Institute of Certified Public Accountants of Kenya and others, will be required to ensure that professionals wishing to be registered produce their PINs prior to admission to the bodies.
The KRA is also seeking to expand the scope of application of withholding tax to services that are not currently captured in the current legislation.