{UAH} Gambling Taxation

Gambling Taxation

Sometime last year, there was rising public concern especially from MPs at links between the growth of gambling, especially sports betting, and government's response of merely taxing the activity, with some proposing to ban the activity as a whole. This came about because of the new law regulating lotteries and gambling in Uganda – The Lotteries and Gaming Act 2016, and the perception that government was promoting gambling without balancing its revenue benefits against gambling's wider social and economic costs. However, gambling is practised all over the world, and in most cases, some forms of it is legal, with the extent and conditions under which it is permitted being regulated by government. However, the key issues for gambling policy considerations have to do with whether the social, ethical and economic damage that may be caused by gambling, justifies the reduction of illegal gambling activities through regulation and higher taxes.

Under the new law, taxes are levied on receipts by operators of gambling and gaming activities. However, out of the four classes of gambling, only formal and commercial gambling is taxable in the form of income tax and as a levy or form of excise duty. The outburst by the MP's resulted in an increment in the gambling tax from 20% of net takings to 35%. Operators are also liable to another 30% on their net profit as income tax; while individual betters are also liable but this is no longer enforceable since the 15% withholding tax on winnings was recently repealed.

--

"War is nothing but a  continuation of political intercourse, with a mixture of other means. Man will never be free until the last king is strangled with the entrails of the last priest." 

--
Disclaimer:Everyone posting to this Forum bears the sole responsibility for any legal consequences of his or her postings, and hence statements and facts must be presented responsibly. Your continued membership signifies that you agree to this disclaimer and pledge to abide by our Rules and Guidelines.To unsubscribe from this group, send email to: ugandans-at-heart+unsubscribe@googlegroups.com