PwC says the new 35 per cent tax on all gambling revenues is higher compared to other African countries like South Africa, which charges 9.6 per cent, Rwanda (13) and Uganda (20). Neighbours Tanzania replaced corporate tax in the gaming industry with a conclusive 6 per cent tax on revenue as an incentive to attract more players to invest in the business. Besides the blanket 35 per cent tax on revenues, lotteries pay 30 per cent corporate tax and dedicate 25 per cent of their sales to charities as a legal requirement before taking care of winnings and other operating expenses. Mr Okello argues that since winners are not being taxed, with the affected firms absorbing the huge hit, the higher tax rate would do little to curtail gambling habits. Media giant Nation Media Group, which recorded a turnover of Sh11.3 billion and Sh2.4 billion profit before tax, would see its Sh1.6 billion profit after tax (PAT) converted into a crippling Sh1.1 billion loss, representing a 162 per cent profit dip.

Source: Daily Nation January 08, 2018 19:52 UTC