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State forced to ignore of court orders on taxes to raise revenue

The government appears unwilling to let go of the billions of shillings that it has been raking from the tax measures that were introduced by the Finance Act, 2023.

This is despite the Court of Appeal’s judgement that the law is unconstitutional in the wake of the rejection of the Finance Bill, 2024 following public outcry.

The Kenya Revenue Authority (KRA) has been slow to adjust its systems to reflect the reality without the tax measures introduced by the Act, whose implementation began on July 1 last year.

At the same, the Energy and Petroleum Regulatory Authority (Epra) continues to determine pump prices using the 16 per cent Value Added Tax rate introduced by the Act last year.

The Finance Act, 2023 introduced measures such as the doubling of value-added tax on fuel and higher Pay As You Earn (Paye) for high-income earners.

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