Betting Firms Move to Court Over Tax Increase
The move by the government to increase taxes levied on the betting, lotteries and gaming industry by 50 percent has been challenged after betting firms moved to court to contest the increase.
Betting firm Bradley Limited has filed a contest suit at Milimani Court, seeking an order to quash Treasury CS Henry Rotich decision to increase the tax as proposed in the budget statement for the financial year 2017/2018, delivered to the National Assembly on 30 March 2017.
Treasury CS, Interior CS, Betting and Licensing Board has been named as respondents.
The company argues that Rotich in taking the administrative action under the budget process in regard to the betting, lotteries and gaming industry taxation measures was biased and violated the betting firm’s legitimate expectations.
According to the suit papers, the firm argues that the constitutional and statutory primacy in the taxation of the betting, lotteries and gaming industry is vested on the betting control and Licensing Board and the CS in the state department.
The 50 percent increase was announced on 30th of last month during the reading of the government annual budget speech.
The applicants say that Rotich in his budget policy statement dated November 2016 for the fiscal year 2017/2018 there was no mention of an intention to enhance the taxation measures against the betting, lotteries and gaming industry.
“The respondents and particularly CS Henry Rotich have not directly engaged in the industry with respect to the proposals to enhance the taxation measures as proposed in the budget statement delivered on the 30th March,” reads the suit paper.
The firm now wants the increase quashed on grounds that the CS acted outside his jurisdiction by increasing taxation rates for the betting, lotteries and gaming industry.
By Mangera Daisy