Entrepreneur and Centum Investments Director Chris Kirubi has applauded the government’s proposal to raise tax on betting by 50 percent terming betting youth stupid.
The businessman said young people are being fooled that should be a wake-up call if they want to have a good future ahead.
“I am very happy that the government is going to tax (the sector) at 50 percent. I would have wanted them to put 80 per cent. Because if you are so stupid to go and put your money in somebody else hands and expect them to make you rich, you are crazy,” Kirubi said.
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The proposed new tax will affect betting, which is currently taxed at 7.5 per cent, lottery at 15 per cent and gaming taxed at 12 percent.
“Don’t be baited. there is no free money anywhere. If you find free money, know that you are dreaming or you have gone crazy,” he stressed.
Finance Cabinet Secretary Henry Rotich attributed the move to the negative consequences the industry has caused to young Kenyans. The Finance Bill is awaiting approval by the parliament before becoming law.
Meanwhile Gem Member of Parliament Jakoyo Midiwo had also prepared a Bill to introduce new and higher taxes on the gaming industry. Betting companies have been getting huge returns in Kenya enabling to sponsor football clubs and splash money.
Gross revenues from the industry are estimated to be in the region of Sh3 billion and forecasts indicate that the industry will experience steady growth over the next five years.
Gambling is strictly regulated in many countries around the world and banned in mostly muslim countries since it prohibits productivity and it is also not an economic activity. The youth have been spending most of their money betting on sports which has seen some of the lose money.