A local betting firm has moved to court to challenge the budgetary proposal by Treasury Cabinet Secretary Henry Rotich to increase taxes in the betting industry to 50 percent.
Bradley Limited, the company that conducts the Pambazuka National Lottery, moved to court claiming that Rotich acted beyond his mandate in calling for the tax increment
Through its lawyer Muturi Mwangi, Bradley Limited has filed court papers claiming that it is only the betting control and licencing board that is vested with powers to review taxes in the betting industry.
"The first respondent (Rotich) acted without jurisdiction and was not authorised to take the administrative decision and the budget proposal in the budget statement with respect to increase taxation rates for the betting, lotteries and gaming industry," the lawyer added.
Attorney General Githu Muigai, the betting and licensing control board and Interior CS Joseph Nkaissery have been listed as respondents.
CS Rotich, while reading the 2016/2017 budget in parliament on March 30th, had defended the decision to increase taxation in the industry saying lack of regulation in the industry had left many young and vulnerable people at the mercy of the betting companies.
''Betting and gaming have become widespread in our society in an environment that is inadequately regulated,'' Rotich affirmed.
The CS further proposed that all the money collected from the betting industry would be used to fund sports, culture and art.
''All proceeds of these will be put in the newly-created National Sports, Culture and Arts Fund to help support the development of sports, culture and art in the country,'' he said
The Treasury CS had proposed that taxes be raised from the current 7.5 percent (betting), 12 percent (lottery), 15 percent (gaming) and 15 percent(competition) to a uniform 50 per cent for all categories.
