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The flat taxation treats the businesses the identical regardless of their different models and value buildings, which the previous tax regime seems to have taken into account. Pambazuka National Lottery, as an example, last month suspended its operations and its affiliate sports activities betting agency SportPesa cancelled its Sh600 million annual funding to numerous sports organisations. We just don’t see how we are able to probably survive a tax of 35 per cent on gross income. We can solely consider cessation of operations to avoid continual losses,” Martin Dunford, a director of Golden Key Casino, wrote within the letter.
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He added that should casinos shut up store, the business will both go offshore or underground. Gross annual turnover of casinos in Kenya stands at an estimated $20 million , based on a report by advisory agency PricewaterhouseCoopers . Golden Key has annual gross revenue of approximately Sh200 million on which it used to pay a gaming tax of Sh24 million underneath the previous tax price of 12 per cent of the turnover. Lotteries give prizes to holders of random numbers whereas prize competitions reward people for his or her skill, data or use of a company’s merchandise. Click on the heading to go to the betting market overview.
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