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The Kenyan Revenue Authority (KRA) and the Attorney General are in a legal battle against a local lawyer over the right to deduct a 12.5 percent excise duty on wagers.聽
On August 21, a legal petition was filed in the western Kenyan town of Kakamega by lawyer Edward Okwama against operators Milestone Gaming and Standard Global East African, as well as the KRA and the Kenyan Attorney General.
The legal petition sought to declare the gambling excise duty on players' wagers as 鈥渦nconstitutional鈥.
The petition was filed as a certificate of urgency, meaning that Okwama wanted to get a legal order stopping the operators and revenue authority from imposing the tax on players while the legal dispute was ongoing.
Okwama argues there should be an income or winnings excise duty instead of the current excise duty on all wagers, whether they win or lose, which he argues goes against the country's taxation principles.
鈥淭he multiplicity of taxes levied on sports fans, players, and enthusiasts in the gaming industry is in contravention of the international general principle of neutrality, efficiency, certainty, simplicity, effectiveness, fairness, and non-double taxation in a tax regime,鈥 Okwama said.
The judge overseeing the petition ruled: 鈥淧ending the hearing and determination of the application鈥 a 鈥渢emporary conservatory order restraining first and second respondents (Milestone and Standard Global) from deducting 12.5 percent excise duty from the petitioner and other players鈥 should be implemented.
The KRA was served this order on August 23, 2023, filing its own application in response on August 25, 鈥渟eeking to set aside the ex-parte temporary conservatory orders鈥, it told 91天堂原創 GamblingCompliance.
The KRA鈥檚 application was scheduled for hearing earlier this month on September 5. However, the court ruled that there was another party who wished to join the proceedings and it would be unfair to lock them out, according to the KRA.
The applications are now scheduled for hearing on September 21.
鈥淭he order only affects Milestone Gaming Limited and Standard Global East Africa Limited,鈥 according to the KRA.
