Treasury claims court order barring 16pc fuel tax not served

Treasury now insists that they have not been served with the court order barring implementation of 16percent fuel tax six days after the ruling.

This comes a day after the Energy Regulatory Commission was sued for allegedly ignoring the directive from the Bungoma High Court.

Also Read: ERC sued for contempt of court over 16% VAT on fuel

However, appearing before a parliamentary committee, Treasury CAS Nelson Gaichuchie insisted that they must be served through the normal process.

“We are not ignoring the courts but we haven’t been served. Until we are served, we can’t talk about it. But even then, we have the option of appealing,” the CAS said.

He further added that the fuel tax introduced in 2013 was subjected to public participation and there will be no difference even if it shelved for another two years.

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According to the CAS, says that if the 16percent VAT is not implemented, the country will lose Ksh.35billion which will affect service delivery on matters security, free primary education and others.

Senator Olekina Ledama however suggested that Treasury increase taxes on alcohol and cigarettes since VAT on fuel pushes up the cost of basic goods thus affecting the common mwananchi.

Gaichuchie and Pavel Oimeke, Director General of the Energy Regulatory Commission (ERC) had been summoned by the Senate Energy Committee on Wednesday morning.

The High Court in Bungoma temporarily stopped implementation of the 16percent fuel tax pending determination of case filed by three Kisumu residents.

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