The parliamentary committee on Finance and the Ministry of Treasury have expressed their concern over the rise in betting cases among the youths and the elderly.
While calling for higher taxes to lock our players from the vice, they noted that the introduction of the 20 percent taxes on wins would generate over Sh6.8B to the exchequer.
The Mps however called for higher taxes on betting firms as they expressed their concern over an increase in betting on local FM stations.
This emerged when the committee met the Treasury CS Ukur Yattani at Sawela Lodge in Naivasha to discuss the budget estimates tabled on Thursday.
Yattani admitted that betting was an addiction that had affected tens of families and the government was keen to tame.
He added that the 20 percent taxes were part of the measures meant to discourage more people from betting.
“We have seen our youths and even parents get addicted to betting and thus the new tax measures that will see KRA net over Sh6.8B,” he said.
The CS at the same time denied that he had introduced new taxes for bread adding that the commodity had been zero-rated, a move that would see the prices drop.
On motorcycles, he also clarified that the taxes had not been increased adding that locally assembled motorcycles would attract lower taxes.
“We have 17 companies that are involved in assembling motorcycles in the country and we are keen to give them tax waivers as one way of supporting local investors,” he said.
During the meeting, the CS termed as a typing error the Sh8B allocated to buying Vitamin C noting that the real amount was Sh80m.
The chair of the parliamentary committee Gladys Wanga admitted that betting was a threat to many families and called for higher taxation on betting companies.
“The betting craze has now been shifted to radio stations and this has affected the elderly who are using their savings in hope of winning,” she said.
She said that the committee would go through the budget estimates and make their amendments before handing over their report to parliament.
“As a parliament we have our role to play in cushioning the electorate but we are happy with this budget that did not increase taxes as has been the case,” she said.
Wanga added that they had held a meeting with KRA where it emerged that the tax collector would collect Sh2.1trillion of the Sh3.6Tr budget.
“At the end of the day the government will have to borrow so as to fulfil its plans as per the budget and this is not the time to blame each other,” he said.