KRA dismisses Omtatas 16% VAT case terming it as baseless

The Kenya Revenue Authority (KRA) on Monday dismissed a case filed by activist Okiya Omtatah challenging the imposition of the 16% Value Added Tax (VAT) on petroleum products.

KRA termed Omtatah’s petition as baseless and one that lacks merit, urging the court to dismiss it in its entirety.

Omtatah moved to court last week, arguing that the 16 percent levy on fuel products, which came into effect on September 1, is irregular and unconstitutional.

The activist submitted that enforcement of the VAT on fuel was done in defiance of an express decision by Parliament to suspend its implementation.

In its response to the petition, KRA averred that the Constitution grants the national government powers to impose income tax , VAT and other duties on import and export goods.

Through lawyer Kenneth Kirugi, the taxman argued that a provision imposing tax cannot be said to be unconstitutional for reasons that the same is deemed oppressive.

In addition, KRA claimed that Omtatah was asking the court to bequeath itself with both executive and legislative powers, which contravenes the doctrine of separation of powers.

“Article 201 makes this imposition of tax under Article 209 to be subject to legislation,”reads the papers submitted in court by KRA.

In the petition, Omtatah named Treasury Cabinet Secretary Henry Rotich, the National Assembly, the KRA Commissioner General, the Energy Regulatory Commission and the Attorney General as respondents.