CMA seeks tax cuts for firms to pay winnings in shares, T-bonds
The Capital Markets Authority (CMA) is seeking tax incentives for betting firms that pay winnings in form of listed shares.
In a raft of policy proposals for 2018/19 fiscal year, the watchdog notes the betting firms have become common with hundreds of Kenyans winning huge amounts.
“The government has identified the huge tax potential and imposed a tax of 35 per cent.
“Although there is no concrete data to determine the application of funds won through betting, indications are that most of the amounts won are spent on consumption,” said the markets regulator.
The CMA said to encourage savings, there is a need to incentivise betting firms that pay through buying shares in blue-chip firms or Treasury bonds.
Director of policy and strategy Luke Ombara (pictured) said rather than compete with betting industry, the regulator would be trying to leverage on it to “inculcate some saving culture”.
“We’ve initiated discussions with betting companies to be able to get data. We are looking at the figures we are seeing on daily basis — Sh100,000... Sh1
“We’re looking at the igures we are seeing on daily basis — Sh100,000... Sh1 million. This is a substantial amount.” LUKE OMBARA I CMA DIRECTOR OF POLICY
million. This is a substantial amount, which could be mobilised into savings,” he said.
This is the third year the CMA is holding annual policy proposal talks with various stakeholders.
The law requires it holds such forums before the end of December, with the regulator obliged to submit proposals that will result in the deepening of the capital markets in terms regulatory framework and development aspects to State.