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

The Energy Regulatory Commission (ERC) has been sued for contempt of court over the implementation of the 16% Value Added Tax (V.A.T) on petroleum products.

Kisumu High Court Judge Fred Ochieng certified the matter as urgent and ordered the petitioner to serve the Attorney General’s office.

Justice Ochieng set the mentioning of the case on September 12, 2018.

A Kisumu lobby group, Sumawe Youth Group, through their lawyer Ken Amondi, had obtained orders at the Bungoma High Court last week suspending the implementation of the V.A.T.

Speaking to Radio Ramogi , Mr. Amondi said they had cited ERC Director General Pervel Oimeke for failure to implement the directions of the court.

He added that they have already served the order to ERC and the Attorney General’s office ahead of Wednesday’s mentioning at the Kisumu High Court following the Bungoma ruling.

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The AGs office also made an application at the Kisumu High Court seeking to quash the orders given by Justice Stephen Riechi at the Bungoma High Court.

“Temporary conservatory orders be and are hereby granted quashing the decision the Kenya Revenue Authority and the Energy Regulatory Commission dated 1/9/18 to implement the Finance (VAT) Act 2013 levying 16% VAT on petroleum products from 1/9/18 to enable the president to either assent to or reject the amended Finance Bill passed by the National Assembly,” read the ruling signed by Justice Stephen Riechi last week.

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