Sportpesa is again expected to be in the courts, as they fight to overturn a ruling by Justice Mativo on new tax regime. [Photo/
The tussle between Sportpesa and the government over new tax regulations will again continue in the courts after the betting firm said it will appeal last week’s decision.
The betting firm has issued a notice to appeal against the High Court judgment, which chose to uphold the new tax imposed on betting in the country.
The betting firms had initially moved to court to challenge the implementation of a 35 percent tax on all gambling revenues.
According to the firms, the tax burden is unfair and will eat into their profits, affecting their operations.
SportPesa, in its application, states that the tax rate is in breach of Article 201 of the Constitution, which demands the public finance system promotes an equitable society where the tax burden shall be shared fairly.
“This means that a further 35 percent tax would impose an aggregate 90 percent tax burden on betting industry players,” says SportPesa.
It continues: “This is unfair, inequitable and discriminative, thus is illegal for contravening the Constitution. For lotteries, the total deductions come to more than 100 percent because 50 percent is paid out as prizes and not counting costs.”
Lotteries have always been taxed at five percent of their sales, with betting firms giving 7.5 percent, casino gambling at 12 percent and competitions like raffles at 15 percent besides other taxes and levies.
All this however changed on Sunday night the 31st, when the new regulations came into effect.
The firms now want the ruling made by Judge John Mativo overturned.