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The High Court granted temporary relief to taxpayers by suspending the application of the 2018 Finance Bill.
In a separate action brought by the Bankers Association of Kenya, the court also suspended the tax "Robin Hood". In the first case, the activist Okiya Omtatah sought to protect the taxpayer from exposure to levies that were not approved by Parliament.
Judge Wilfrida Okwany temporarily suspended the bill
"I am satisfied that, according to the document that was submitted to me by Omtatah, a prima facie case was made with a probability of success, "she said. The court concludes that the implementation is constitutional and that there will be no prejudice to the government since the bill will come into force immediately.
"If, on the other hand, the court finds that it is unconstitutional, there will be no practical way to compensate taxpayers who have been affected by the project of law, "said the judge
. the budget of 14 June. It contains several modifications to the tax system to help the government to finance its budget of 3 trillion shillings
The modifications include the introduction of a flat tax targeting the informal sector, the revision of the compensatory tax system, money transfers, revocation of interest rate caps, among others.
It also pushed up the cost of mobile money transactions, introduced a tax on bank transfers and resulted in an increase in the cost of kerosene.
Omtatah contends that the imposition that came into effect on July 1 was made on the basis of mere proposals that are subject to approval or rejection by the deputies.
"If Parliament finally rejects the tax proposals contained in the finance bill, it will not be possible to refund taxpayers who have paid taxes, especially for money transfers and purchases. of kerosene ". on the KBA lawsuit, Okwany suspended the application of the tax until a correct definition of "money transferred by the banks" was provided.
She said that her implementation is an important issue that can not be left to
She added that the finance bill is still in its infancy and that it is not in its infancy. has not yet been adopted by the National Assembly.
"I conclude that KBA has raised the issue of ambiguity in the law in question.Calls the attention of the Attorney General and KRA to make a clarification on the matter so as not to leave to the subjective interpretation of those who are supposed to apply it, "said the judge.
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