[Photo: Courtesy]Betting company Sportpesa is up in arms after President Uhuru Kenyatta signed Finance Bill 2017 into law.The law raises the tax rate on gambling but sets it at a lower rate than had originally been proposed. It will impose a tax of 35 per cent of gross profits on all gambling.Until now, lotteries were taxed at 5 per cent, betting firms, bookmakers at 7.5 per cent, casino gambling at 12 per cent and competitions like raffles at 15 per cent.Sportpesa has since withdrawn from sponsoring all local football, citing the impact of the taxation.In a notice to customers, Sportpesa said the law deals a blow to its operation.Below is the notice, released, June 24, 2017."Esteemed customer, Regarding the new taxation law, we would like to clarify on the impact it has on the business. All Kenyan companies pay corporate tax at 30%. Currently, we pay at least 37.5% tax, higher than the normal corporate tax. The new betting law adds an additional 35% tax. So SportPesa will be paying a minimum of 37.5% + 35% = 72.5% tax of gross revenue. In addition, we are still paying all other statutory taxes like P.A.Y.E., V.A.T and Withholding taxes. We therefore cannot compete in the crowded market while still sponsoring sports while other companies are not doing the same. Thank you."

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