AFC Leopards begs the government to stop the potential 20% consumption tax bill

A possible proposal in the legislation will exclude SportPesa, which will allow the betting state to collect more taxes

AFC Leopards pleaded with the government to stop the 20% consumption tax bill on gaming shares.

Initially, the bill was cancelled after major stakeholders (including SportPesa, which exited the Kenyan market in protest), but the state is now debating the topic in parliament.

The bill-which was republished last week after being submitted to the National Assembly at the end of April-stipulates that the consumption tax on bets shall be 20% of the bet or bet amount.

“While we wait for the National Assembly to announce the focus of the 2021/2022 budget policy, we hope to draw the public, parliamentarians and the government to the attention of the sports sector, especially the football sector. The potential negative impact envisaged by the football sector is in Kenya. If a 20% consumption tax is imposed,” AFC Leopards said.

“The promulgation of this law will prevent all clubs currently supported and sponsored by various betting companies from continuing to operate:

“Sponsorship keeps the club and the seemingly football league itself functioning, and helps players and clubs develop. The same goes for other sports that benefit from similar sponsorship. During 2016-2020, more than 1.6 billion shillings have been invested in local clubs And millions of TV copyrights, advertisements and merchandise, which help to improve the status of Kenyan football clubs.

“Due to the Covid-19 pandemic, after a season without fans, our club relies heavily on the support of our sponsoring partners. We are not out of the predicament, the future is unpredictable, and there is no foreseeable expectation. Restore the full stadium.

“A 20% consumption tax will clearly exclude the continued sponsorship of football clubs at all levels [National Super League, Division One and County Leagues], Eventually leading to the unsustainable operation of most league teams.

“As you may know, our club has been facing a very challenging financial period and this taxation, which will prevent our main sponsors from continuing their partnership with them, which will definitely become one of Kenyan football’s own The goal, because if the second half of the season is not forced to be suspended. This will also have an adverse effect on the highly anticipated 2022 season, which should be a grand restart of Kenya’s mature top football.”

Ingwe urged the government to listen to the opinions of sports stakeholders, stop pushing forward, and shelve the bill: “This is not the first time that consumption tax has been proposed into the law, and the wisdom that prevailed in the previous suspension of activities takes into account the expected impact on the sports sector. Must again prevail.”

“Given that we continue to face the challenge of Covid-19 restrictions, this is especially necessary at this time.

“As representatives of Kenya’s top football clubs and sports circles, we believe that this tax proposal is out of date, and we strongly urge the government and parliament members to give special consideration to this urgent issue, and to give the Sports Brotherhood a chance to fight during these difficult times.”

After SportPesa withdrew in 2019, the Premier League club was in a huge dilemma, and Sony Sugar was downgraded due to three errors.

FKF Premier League team AFC Leopards called on the government to stop pushing the parliament to pass the 20% betting excise bill.

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About the Author: Agnes Zang