High Court suspends 16% VAT on fuel pending case hearing

The High Court in Bungoma has temporarily stopped implementation of the 16% Value Added Tax (V.A.T) on petroleum products pending determination of case filed by three Kisumu residents.

The ruling was made on Thursday after a group of youth in Bungoma sued Treasury Cabinet Secretary Henry Rotich for effecting the new fuel levy.

“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,” reads the ruling signed by Justice Stephen Riechi.

Justice Riechi further stated that the case will continue on September 12, 2018.

The fuel levy has caused nationwide outcry, even leading to a strike by the Kenya Independent Petroleum Distributors Association (KIPEDA).

ERC on Wednesday cancelled the licence of KIPEDA for allegedly spearheading a boycott of petroleum products and alleged intimidation of other petroleum transporters.