Betting, lottery and gaming firms will receive a fresh blow if the Treasury’s proposal to introduce a penalty and interest for late payment of tax is approved by Parliament.
Treasury Cabinet Secretary Henry Rotich proposed the introduction of a 20 per cent penalty and two per cent interest on late payment of tax in the Betting, Lotteries and Gaming Act.
“Currently, there is no penalty or interest on payment of taxes in the betting, lotteries and gaming sector which has led to non-compliance,” said Mr Rotich when presenting budget statement for financial year 2018/19.
The CS said this will enhance the collection of the taxes that are meant to support sports, arts, cultural and social development activities in the country.
Mr Rotich said the move is meant to nurture and develop talent in the country. The Treasury allocated Sh200 million for construction of a sports academy and Sh300 million for completion of an ultra-modern national library.