Blow to KRA as court defers proposed taxes in Finance Bill

The High Court has temporarily suspended the imposition of any taxes proposed in the Finance Bill 2018 pending hearing and determination of the petition.

In her ruling, Justice Wilfrida Okwany said that if upon hearing of the application the court comes to the conclusion that the implementation is constitutional there will be no prejudice to the government since the bill will immediately be implemented.

“If on the other hand the court finds its unconstitutional there will be no practical way of compensating the Kenyans payers who have been affected by the said Bill,” ruled Justice Okwany.

The judge said that she is satisfied that from the material placed before her by Okiya Omtata a prima facie case has been made with a likelihood of success.

According to Omtata, his move to court was to protect Kenyans from exposure to taxes which have not been approved by Parliament, contrary to Article 210 (1) of the Constitution.

Omtata added that the Finance Bill plans to introduce a number of amendments to the tax regime to mobilize revenues to finance the Government’s budget of some Ksh.3trillion.

“This matter is urgent because the respondent have begun implementing or imposing taxes proposed in the finance Bill 2018 before the same is considered and approved by the National Assembly,” he said.