Lottery firm fights new taxes in court

Milimani Law Courts. FILE PHOTO | NMG
Milimani Law Courts. FILE PHOTO | NMG 

A public lottery firm has moved to court challenging new taxes in the Betting, Lotteries and Gaming Act.

Pambazuka National Lottery (PNL) has sued the Betting Control and licensing board, the National Assembly, the Kenya Revenue Authority Commissioner General and the Attorney-General.

PNL claims the new taxes which are only applicable to the betting and gaming industry were passed without public participation required for the legislation.

The firm faulted Parliament for amending the law that will give way to the effecting of the new rates which have been described as punitive, unreasonable, unfair and unconstitutional.

The firm termed the new tax rates that are set to be effective as from January next year, as unlawful and should therefore be nullified by the High Court.

It alleged that should the new rates be effected several businesses will certainly shut down their operations which would result to loss of employment and investments.

“The urgency in the matter is that unless this case is heard and determined before the effective date of the impugned taxes, PNL will likely suffer closure as well as collapse for the reasons set out,” said their lawyers from the firm of Muchoki, Kangata, Njenga & Co advocates.

They claimed that the new law stipulates increased tax chargeable as an additional one to betting, lottery and gaming companies to a uniform rate of 35 per cent to the taxman. The amendments increased tax remitted by betting firms from 7.5 per cent of revenue, five per cent for lottery firms, 12 for gaming ones and 15 for prize competition.