National Assembly Majority Leader Aden Duale. Together with other MPs they have criticised SportPesa for cancelling local sponsorships. [Photo/the-star.co.ke]
Garissa Township MP Aden Duale is among a section of MPs who have criticized the move by betting firm, SportPesa to cancel all local sports sponsorship.
The MPs led by Mr. Duale said the company should not be complaining about the new taxation when they are making billions in profits.
Mr. Duale said the betting firm should not protest the 35 percent taxation when other countries are being taxed up to 90 percent.
They accused SportPesa of blackmailing the government to evade paying taxes from the billions they collect.
“Kenya is among the countries with the lowest gambling tax rates in the world. Germany charges 90 percent, France, and Austria up to 80 percent and Denmark 75 percent,” said Mr. Duale.
Mr. Duale was with Senators Irungu Kang'ata (Murang’a) and Aaron Cheruiyot (Kericho), and Kipkelion West MP Hillary Kosgey on Wednesday.
Mr. Kang'ata said the betting company cannot be sponsoring a premier league team then claim they cannot sponsor local teams.
“The new tax on gambling is not punitive as some people would want to think. It is within the range of other “sin taxes”- like cigarettes and alcohol taxes. In fact, gambling is not an economic activity that adds value to society.”
“Sports gambling is even worse because it targets masses unlike other forms of gambling that target the rich like casinos. They can’t leave Kenya because they know too well that there is a milk cow around for no job done,” Mr. Kang'ata said as quoted by the Daily Nation.
SportPesa CEO Ronald Karauri on Tuesday announced that they have withdrawn all local sports sponsorship citing high taxation by the Government.