Milimani Law courts in Nairobi. [Photo /Kenyayote]
The pambazuka national lottery (PNL) has moved to court challenging the new tax rates on the betting, lotteries and gaming industry that was passed to law by the parliament last year.
PNL, which is one of the lotteries company in Kenya, claims that the new tax rates were passed by parliament without the public participation which is unlawful and therefore the high court should suspend the rates.
PNL has also sued various bodies including Betting Control and licensing board, the National Assembly, the Kenya Revenue Authority Commissioner General and the Attorney-General for supporting the rates while terming the new tax rates as unreasonable, unfair and punitive.
The firm has also alleged that the new rates that is set to be effected from January next year will derail their businesses and thus leading gaming industries to shut down thus resulting to loss employment of staffs and the country revenue.
“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.
The gaming industry has been experiencing tough times considering that the National Treasury raised their taxes to a standard 50 per cent in the year 2017/2018 prompting the giant betting company, sportpesa, to reconsider its stay in Kenyan market thus announcing its exit in Kenyan market as from next year.
This even comes as a new bill proposing heavy fines and stringent measures on betting companies tabled before the parliament on October 10 by Aden Duale.