The Ugandan government has proposed a 15 per cent tax on winnings, effectively splitting the gaming taxation between players and arcade owners.
The proposal, contained in the Income Tax (Amendment) Bill 2017, has been welcomed by arcade owners who currently pay a 35 per cent gaming tax. State Minister for Planning, David Bahati, revealed the government’s plan last month.
Bahati said: “What we have discovered is that the 35 per cent tax, which is currently the highest in the whole world, was becoming problematic to implement. That's why we are saying that, since gaming and gambling is a zero-sum game, let each one of them bear the burden of tax. That's the rationale of spreading it."
Last year, Parliament passed the Lotteries and Gaming Act, following an outcry from communities about the growing gambling trend, which had attracted a considerable number of jobless youths across the country.
Alongside the new tax regime, the regulatory board is also expected to establish and maintain a national central electronic monitoring system to detect and monitor any irregular betting and gambling transactions.