Reprieve for gamblers as levies stopped

By PAMELA CHEPKEMEI

Gamblers got a reprieve yesterday when the High Court stopped the chief tax man from imposing new levies on those who win games.

Casino operators are against a law that requires them to deduct  20 per cent withholding tax from gamblers on winnings gained.

The court heard that the new levies would drive away gamblers and discourage prospective ones.

Justice David Majanja issued the temporary orders stopping the Kenya Revenue Authority from implementing the new levies, which came into effect in January this year.

The judge directed that the levies be suspended pending the hearing and determination of the petition.

The lawyer acting for 42 casino operators filed a petition in court challenging the amendments introduced by the Ministry of Finance.

They contend that the National Assembly did not consult the  stakeholders in the gaming industry before passing the Bill.

The President assented to the Finance Act 2013, Act No 30 of 2013  income tax to include  winnings from betting and gaming as one of the payments subject to a 20 per cent withholding  tax. Since January, the operators have been required to remit the tax to KRA.