@TheStar

Sportpesa takes another shot at tax appeal as it pulls plug on sponsorships

10 months ago, 3 Jan 16:30

By: Cynthia Ilako @la ...

Sportpesa hangs on its last shred of hope as it prepares to appeal a High Court ruling that dismissed their bid to overturn the law raising tax on gambling.  CEO Ronald Karauri said SportPesa has had to take cautionary measures to reduce operational costs. The firm has since withdrawn full value of all its local sponsorships. “We went to court and unfortunately lost. Even though we are going to appeal, we cannot just wish that we will win. We have to take action now to ensure that we do not go into losses.” It is expected to go back to court this week. “We already lodged our appeal when the ruling was read and hope to file our papers this week.” Last week Sportpesa alongside Pambazuka National Lottery lost a case challenging the implementation of a 35 per cent tax on revenue at the High Court. Karauri said that sponsorships were a big expense and with the new tax regime, the firm’s business in the country would only be economically viable if they let go the said sponsorships. “SportPesa is not exiting the country but to survive that’s why we have to do drastic cuts on our expenses,” he said. Given that the firm paid approximately Sh1.7 billion tax in 2015 when betting, gaming and lottery firms all paid a uniform tax of 15 per cent, Karauri said the taxation burden will shoot up by a significant margin. He said the imposed tax burden was unfair granted it did not trickle down to the consumer as winnings were to go untaxed as usual. “When we ask about fairness whenever there is tax on let’s say alcohol, the tax is for the consumer whereas in this case the tax burden is only on us,” he said. 
Read More


Category: topnews news business

Suggested

12 minutes
@TheStar - By: Sara Ruto
EXPERT COMMENT: Life or death exams fuel cheating

The stop-gap measures by the ministries of education, interior and all other authorities to stop cheating in the KCPE and KCSE exams show that the tests are becoming intolerably high-stakes. These mea ...

Category: topnews news
12 minutes
@TheStar - By: Joseph Ndunda @jo ...
Ekai, ex-Nock officials charged over 2016 Rio olympics scandal

Kenya's ambassador to Russia and former Sports PS Richard Ekai and two others yesterday denied abuse of office and graft charges arising from the Sh55 million Rio Olympics scandal. Ekai was charged al ...

Category: topnews news
12 minutes
@DailyNation - By: Afp
Bolt offered contract with Malta football club

Bolt does not yet have a contract with the Australian club. ...

Category: topnews news sports
44 minutes
@AfricaNews - By: Daniel Mumbere
Kidnapped Tanzania billionaire's family offers reward: Here's a run-down | Africanews

Gunmen snatched Dewji, 43, listed by Forbes as Africa's youngest billionaire, as he entered a hotel gym in Tanzania's economic capital last Thursday morning. ...

Category: africa news topnews
1 hour ago
@AfricaNews - By: Daniel Mumbere
Cameroon opposition rejects 'leaked' results showing Biya victory | Africanews

In a Facebook post, posted on Monday, Kamto said results which are purported to originate from the National Vote Counting Commission, are 'fake figures originating from fabricated sheets of fake obser ...

Category: africa africa_elections news topnews
12 minutes
@TheStar - By: Godfrey Odhiambo
Police recover rifle stolen from slain AP constable

Police in Kisumu have recovered an AK 47 rifle stolen from an Administration Police officer last week in Kibos area, Kisumu East Sub County. According to area OCPD Ancient Kaloki, the firearm was reco ...

Category: topnews news

@TheStar

Sportpesa takes another shot at tax appeal as it pulls plug on sponsorships

10 months ago, 3 Jan 16:30

By: Cynthia Ilako @la ...
Sportpesa hangs on its last shred of hope as it prepares to appeal a High Court ruling that dismissed their bid to overturn the law raising tax on gambling.  CEO Ronald Karauri said SportPesa has had to take cautionary measures to reduce operational costs. The firm has since withdrawn full value of all its local sponsorships. “We went to court and unfortunately lost. Even though we are going to appeal, we cannot just wish that we will win. We have to take action now to ensure that we do not go into losses.” It is expected to go back to court this week. “We already lodged our appeal when the ruling was read and hope to file our papers this week.” Last week Sportpesa alongside Pambazuka National Lottery lost a case challenging the implementation of a 35 per cent tax on revenue at the High Court. Karauri said that sponsorships were a big expense and with the new tax regime, the firm’s business in the country would only be economically viable if they let go the said sponsorships. “SportPesa is not exiting the country but to survive that’s why we have to do drastic cuts on our expenses,” he said. Given that the firm paid approximately Sh1.7 billion tax in 2015 when betting, gaming and lottery firms all paid a uniform tax of 15 per cent, Karauri said the taxation burden will shoot up by a significant margin. He said the imposed tax burden was unfair granted it did not trickle down to the consumer as winnings were to go untaxed as usual. “When we ask about fairness whenever there is tax on let’s say alcohol, the tax is for the consumer whereas in this case the tax burden is only on us,” he said. 
Read More

Category: topnews news business

Suggested

12 minutes
@TheStar - By: Sara Ruto
EXPERT COMMENT: Life or death exams fuel cheating

The stop-gap measures by the ministries of education, interior and all other authorities to stop cheating in the KCPE and KCSE exams show that the tests are becoming intolerably high-stakes. These mea ...

Category: topnews news
12 minutes
@TheStar - By: Joseph Ndunda @jo ...
Ekai, ex-Nock officials charged over 2016 Rio olympics scandal

Kenya's ambassador to Russia and former Sports PS Richard Ekai and two others yesterday denied abuse of office and graft charges arising from the Sh55 million Rio Olympics scandal. Ekai was charged al ...

Category: topnews news
12 minutes
@DailyNation - By: Afp
Bolt offered contract with Malta football club

Bolt does not yet have a contract with the Australian club. ...

Category: topnews news sports
44 minutes
@AfricaNews - By: Daniel Mumbere
Kidnapped Tanzania billionaire's family offers reward: Here's a run-down | Africanews

Gunmen snatched Dewji, 43, listed by Forbes as Africa's youngest billionaire, as he entered a hotel gym in Tanzania's economic capital last Thursday morning. ...

Category: africa news topnews
1 hour ago
@AfricaNews - By: Daniel Mumbere
Cameroon opposition rejects 'leaked' results showing Biya victory | Africanews

In a Facebook post, posted on Monday, Kamto said results which are purported to originate from the National Vote Counting Commission, are 'fake figures originating from fabricated sheets of fake obser ...

Category: africa africa_elections news topnews
12 minutes
@TheStar - By: Godfrey Odhiambo
Police recover rifle stolen from slain AP constable

Police in Kisumu have recovered an AK 47 rifle stolen from an Administration Police officer last week in Kibos area, Kisumu East Sub County. According to area OCPD Ancient Kaloki, the firearm was reco ...

Category: topnews news
Our App