The possible incorporation of the proposals into legislation that SportPesa has marketed would result in the states betting being taxed more heavily
AFC Leopards has pleaded with the government to stop the reintroduction of the 20% excise tax on wagers.
Initially, the bill was dropped after key stakeholders, including SportPesa, who left the Kenyan market in protest, debated the issue in parliament.
The bill – which was republished last week after being presented to the National Assembly at the end of April – provides for an excise tax on bets of 20% of the amount wagered or wagered.
“In anticipation of the 2021/2022 budgetary highlights from the National Assembly, we would like to make the public, MPs and the government aware of the possible negative effects that the sports sector, and especially the football sector, can expect.” in Kenya, the 20% excise duty should be introduced, “said AFC Leopards.
“The passage of this law will mean that all clubs currently supported and sponsored by various betting companies will not be able to continue their operations:
“Sponsorships have kept clubs and, allegedly, the football league itself running and helped develop players and clubs. This applies to other sports that benefit from similar sponsorship. Between 2016-2020, over Ksh 1.6 billion was invested in local clubs in clubs and millions more in television rights, advertising and merchandise, which has helped raise the profile of football clubs in Kenya.
“After a season without fans due to the Covid-19 pandemic, our clubs were largely dependent on the support of our sponsoring partners. We are not yet out of the woods with an unpredictable future and no foreseeable return to full stages.
“The adoption of a consumption tax of 20% will clearly rule out further sponsorship of football clubs at all levels [National Super League, Division One and County Leagues], with the net effect that the operation of most league teams is unsustainable.
“As you may know, our clubs are facing extremely difficult financial times and with this tax that our main sponsors will no longer be able to continue their partnerships it will certainly be a Kenyan football own goal as it is disruptive if not would even be mandatory. ” a suspension of the second half of the season. This would also have a negative impact on the much anticipated 2022 season, which would be the big restart for Kenya’s top-flight football. “
Ingwe has urged the government to listen to the advocates of sport, stop the push and put the bill aside: “This is not the first time the excise tax has been passed into law, and the wisdom that came with the previous suspension of the Activity prevailed, must prevail again given the projected impact on the sports sector. “
“This is particularly necessary at this point in time given the challenges we continue to face with the Covid-19 restrictions.
“We, as representatives of the top football clubs in Kenya and thus also the Sports Brotherhood, believe that this tax proposal has come at an inopportune time and we urge the government and Members of Parliament to give special attention to this urgent matter and” you give the Sports Brotherhood a chance to fight in these difficult times. “
SportPesa’s exit in 2019 led to enormous problems for Premier League clubs and Sony Sugar was relegated for awarding three rounds.
The AFC Leopards of the FKF Premier League has asked the government to put an end to pressure to pass the bill on a 20% excise duty on bets.