Category Taxation In Africa

Kenya’s Gambling Taxes Are Too High

January 10, 2018 Taxation in Kenya

Online blackjackNAIROBI – Kenya’s heavy-handed approach to taxing gambling operators may drive some businesses out of the country.

A new report issued by the international consultancy PricewaterhouseCoopers shows that the tax burden faced by gambling operators in Kenya is higher than any of its regional neighbours and most developed countries.

As of January 1st 2018 the rate of tax faced by gambling companies is 35 percent on all gambling revenues, with no allowances for deductions.

In comparison, the rate levied in Tanzania, South Africa, Uganda, and Rwanda, are 6 percent, 9.6 percent, 13 percent, and 20 percent respectively.

Similarly, Germany, the UK, and Canada have rates of 5 percent, 15 percent, and 20 percent.

The treasury claims that the high rate of tax is needed to protect vulnerable people...

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Kenya’s Tax Revenue Slowing Down

December 13, 2017 Taxation in Kenya

Kenyan tax revenueNAIROBI – Tac collections in Kenya have slowed down, when compared to growth in the economy.

New information released by the World Bank in its 16th Kenya Economic Update report has shown that the tax-to-GDP ratio in Kenya has fallen to its lowest level in a decade.

Over the 2016/17 financial year, the tax-to-GDP ratio fell to approximately 16.9 percent, even though the total level of revenues rose by 13.3 percent.

However, the growth in the level of tax revenues was outpaced by growth of the nominal GDP levels, which reached 14.9 percent in the same time period.

The World Bank explained that while the economy in Kenya grew at an impressive rate, the government coffers didn’t enjoy the same positive boost due to inadequate efforts to ensure tax compliance.

It was noted in particular tha...

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Ghana Needs Drain Tax

October 3, 2017 Taxation in Ghana

The Drain (i)ACCRA – Ghana needs to tax property owners in order to fund anti-flooding measures.

The World Bank is recommending that the government of Ghana begins levying a new tax to help pay for the construction of drainage and anti-flood measures in the country.

The suggestion for a so-called drainage tax came after a tour of selected flood-prone areas by a working group at the bank.

It was suggested that a drainage tax be set up to be directly property owners, hotels, and individuals who live in flood-prone lowland areas.

In addition to funding flood-water drainage infrastructure, the funds raised by the tax could also be used to build and maintain wastewater disposal facilities in cities.

Flooding is a significant problem in Ghana, with recent floods in 2015 killing hundreds of people.

The gov...

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South Africa’s Sugar Tax Approaches

September 6, 2017 Taxation in South Africa

tax on sugary drinksJOHANNESBURG – South Africa’s sugar tax will come into effect in April 2018, however, nobody knows exactly what the tax will look like.

At a joint meeting of Parliamentary health and finance committees in South Africa it was indicated that the country’s proposed tax on sugar sweetened beverages may come into force by April 2018.

However prior to the tax being enacted, the government must still decide on the exact rate of the new tax.

Initially the government hoped to introduce the tax at a rate of 20 percent.

Currently, the government’s proposal has been diluted to a rate of 10 percent at the time of introduction, with gradual increases to the rate as time goes on.

Alternatively, industry leaders are calling for the government to introduce a further watered down tax which would reach ...

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Tax Breaks for Start-Ups Fall Flat in South Africa

July 25, 2017 Taxation in South Africa

Tax breaks for startupsPRETORIA – Tax breaks aimed at fostering a thriving small-business and start-up environment in South Africa have been labelled a resounding failure.

New information released by the South African Revenue Service indicates that the government’s endeavour to boost investment into small business has failed, as over the last two years only one entity has taken advantage of a special tax break for businesses making grants to small businesses.

Currently, an entity which makes grants to small businesses is able to enjoy tax exemptions, if it is registered for the exemption with tax authorities.

The businesses which receive the grants from a registered entity would also enjoy exemptions.

The program of exemptions was started in March 2015, and was intended to encourage a greater level of inves...

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