By Nicholus Nduati
Sports lovers who participate in betting and gaming activities will going forward see their returns go down significantly after the government increased taxes on these activities to a flat rate of 50 percent on all categories from a maximum of 12 percent taxed previously.
Betting lovers were not the only ones who lost in this year’s budget as though taxes on beer were not increased those on spirits were increased which will henceforth see one liter retail at 200 shillings up from 175 shillings.
With the economic adjustment in inflation expected to take place on the first of July this year, National treasury cabinet secretary Henry Rotich warned of a possible future increase in taxes for all exercise-able goods in line with the adjusted inflation figures.
At the same time, it is a plus for local beer manufactures using locally produced materials such as cassava and sorghum who get an 80 percent tax remission while spirits increase from 175 shillings a liter to 200 shillings.
Beers such as tusker produced locally using barley which is mostly imported will not benefit from the tax cut.
With the economic adjustment in inflation expected to take place on the first of July this year, Rotich warned of a possible future increase in taxes for all exercise-able goods in line with the adjusted inflation figures.
It was also a mixed bag of fortunes for cigarette manufactures with those having filters enjoying a cut of upto 1,800 shillings per mill while those without filters continue to attract the current cost of 2500 shillings per mill.
A warning was however given to Kenyans leaving in the Diaspora given an amnesty to declare their income and returns for 2016 that they should do so by June of next year.
International corporations will also need to continue sourcing up to 40 percent of local resources to remain in business.